Multiple Choice
A corporation had 50,000 shares of $20 par value common stock outstanding.The board of directors declared and issued a 50% stock dividend.The market value of the stock was $27 per share.What is the journal entry to record this stock dividend?
A) Debit Retained Earnings and credit Common Stock for $675,000.
B) Debit Retained Earnings and credit Common Stock for $500,000.
C) Debit Retained Earnings and credit Cash for $675,000.
D) No entry is made to record the stock dividend.
Correct Answer:
Verified
Correct Answer:
Verified
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