Question 19 (1 point)

The effect of a stock dividend is to

Question 19 options:

	decrease total assets and shareholders' equity.
	change the composition of shareholders' equity.
	decrease total assets and total liabilities.
	increase the book value per common share.

Question 20 (1 point)

Dividends Payable is classified as a

Question 20 options:

	long-term liability.
	contra shareholders' equity account to Retained Earnings.
	current liability.
	shareholders' equity account.

Question 21 (1 point)

Samson Inc. has 1 000 common shares issued at $100 and currently trading at $200. The entry to record declaration of a 10% stock dividend is

Question 21 options:

DR Common Stock Dividends Distributable	$100 000
CR Retained Earnings		$100 000

DR Retained Earnings	$100 000
CR Cash		$100 000

DR Stock Dividends	$20 000
CR Common Stock Dividends Distributable		$20 000

DR Common Stock Dividends Distributable	$20 000
CR Common Shares		$20 000

Question 22 (1 point)

Irwin Inc. had 200 000 common shares before a stock split occurred, and 400 000 shares after the stock split. The stock split was

Question 22 options:

	2 for 4.
	4 for 1.
	1 for 4.
	2 for 1.