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Smith has 300,000 shares of common stock outstanding with a par value of $3 per share. Smith authorized a 10% stock dividend when the market value...

Smith has 300,000 shares of common stock outstanding with a par value of $3 per share. Smith authorized a 10% stock dividend when the market value was $8 per share. A journal entry for the stock dividend would require:

No entry is needed.
a credit to Paid-in Capital in Excess of Par for $150,000.
None of these.
a credit to Common Stock for $240,000.
a debit to Retained Earnings for $90,000.


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a credit to... View the full answer

1 comment
  • A journal entry for the stock dividend would require a credit to Common Stock for $240,000. [300000 * 8 * 10 % = $ 240,000]
    • shardanilesh70
    • May 06, 2016 at 8:21pm

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Attached is a detailed explanation... View the full answer

a debit to... View the full answer

a credit to Paid-in Capital in Excess of Par for $150,000. Entry :... View the full answer

1 comment
  • a credit to Paid-in Capital in Excess of Par for $150,000.
    • tutor.july31
    • May 06, 2016 at 8:24pm

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