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Dan Druff Shampoo Has 1,000,000 Shares of Common Stock Authorized

Question 170

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Dan Druff Shampoo has 1,000,000 shares of common stock authorized with a par value of $1 per share, of which 500,000 shares are outstanding. When the market value was $9 per share, Druff issued a stock dividend by which for each ten shares held, one share was issued as a stock dividend. The par per share did not change. What entry did Druff record for this transaction?


A) Dan Druff Shampoo has 1,000,000 shares of common stock authorized with a par value of $1 per share, of which 500,000 shares are outstanding. When the market value was $9 per share, Druff issued a stock dividend by which for each ten shares held, one share was issued as a stock dividend. The par per share did not change. What entry did Druff record for this transaction? A) B) C) D)
B) Dan Druff Shampoo has 1,000,000 shares of common stock authorized with a par value of $1 per share, of which 500,000 shares are outstanding. When the market value was $9 per share, Druff issued a stock dividend by which for each ten shares held, one share was issued as a stock dividend. The par per share did not change. What entry did Druff record for this transaction? A) B) C) D)
C) Dan Druff Shampoo has 1,000,000 shares of common stock authorized with a par value of $1 per share, of which 500,000 shares are outstanding. When the market value was $9 per share, Druff issued a stock dividend by which for each ten shares held, one share was issued as a stock dividend. The par per share did not change. What entry did Druff record for this transaction? A) B) C) D)
D) Dan Druff Shampoo has 1,000,000 shares of common stock authorized with a par value of $1 per share, of which 500,000 shares are outstanding. When the market value was $9 per share, Druff issued a stock dividend by which for each ten shares held, one share was issued as a stock dividend. The par per share did not change. What entry did Druff record for this transaction? A) B) C) D)

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