Multiple Choice
Use this information to answer the following question. Pinnacle Corporation has 90,000 shares of $10 par value common stock outstanding.The following transactions occurred during the year:
Mar. 17 Declared a 10 percent stock dividend to stockholders of record on March 20. Market value of the stock was $22 on March 17.
Mar. 30 Distributed the stock dividend.
-The entry to record the transaction of March 17 is:
A) Stock Dividends 198,000 Common Stock Distributable 90,000
Additional Paid-in Capital 108,000
B) Common Stock Distributable 90,000 Common Stock 90,000
C) Common Stock Distributable 198,000 Common Stock 90,000
Retained Earnings 108,000
D) Stock Dividends 198,000 Cash 198,000
Correct Answer:
Verified
Correct Answer:
Verified
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