On September 1, Ziegler Corporation had 55,000 shares of $5 par value common stock, and $165,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is:

Multiple Choice

• No entry is made for this transaction.

• Debit Retained Earnings $825,000; credit Common Stock Split Distributable $825,000.

• Debit Retained Earnings $825,000; credit Common Stock $825,000.

• Debit Retained Earnings $275,000; credit Stock Split Payable $275,000.

• Debit Retained Earnings $275,000; credit Common Stock $275,000.

A company has bonds outstanding with a par value of $250,000. The unamortized discount on the bonds is $12,000. The company calls the bonds at a price of $225,000. As a result, the company should record a $13,000 loss on the bond retirement.

Group startsTrue or False

True, unselectedFalse