. Which of the following is true of a stock dividend? Multiple Choice O Reduces a corporation's assets and stockholders' equity, The decision to declare a stock dividend resides with the shareholders. O It is a liability on the balance sheet. Transfers a portion of equity from retained earnings to a cash reserve account O Does not affect total equity, but transfer amounts between the components of equity 3 On January 1, a company issued and sold a $397000.5%, 10-year bond payable, and received proceeds of $392,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: 8 18.01 Multiple Choice C) Debt Bond Berest Expense $10.375: credit Cash $9.925. credit Discount on Bonds Payable $250. O Debit Bond Interest Expense $19.850 Credit Cash $19.850 O Debit Bond Interest Expense $9,925, debit Discount on Bonds Payable $250, Credit Cash $10,175 O De Bond terest Expense 3.675. Discount on Bonds Payable $250. Credit Cash $9.925 O De Bond interest Expense $.925;credit Cash $9,925 A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a 33 S cens Treasury stock Discount on stock O Premium on stock O Stock subscription Stock dividend