Question 5 (1 point) Both large and small stock dividends will cause a decrease in retained earnings for the market value of the shares issued at the date the dividend is declared. 1) True 2) False Question 6 (1 point) On January 1, Pina Colada Corp. had 92,000 shares of $10 par value common stock outstanding. On May 7 the company declared a 5% stock dividend to stockholders of record on May 21. Market value of the stock was $13 on May 7. The entry to record the transaction of May 7 would include a 1) debit to Stock Dividends for $59,800. 2) credit to Cash for $59,800. 3) credit to Common Stock Dividends Distributable for $59,800. 4) credit to Common Stock Dividends Distributable for $13,800