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18. What is the effect on retained earnings and total equity of the company when a stock split is declared? Retained Earnings Total Equity to. Decrease Decrease b. Decrease Does not change c. They do not change Decreases d. Do not change does not change 1 19. A company has 50,000 common shares outstanding with an par value of $ 10. When the market price was $ 30 per share, the company declared a dividend that will result in the distribution of 5,000 additional common shares to shareholders. The correct wage entry to record the declaration of this dividend is: to. Retained earnings 150,000 Stock dividend to be distributed 50,000 Additional paid-in capital 100,000 b. Retained earnings 150,000 Stock dividend to be distributed 150,000 c. Retained earnings 150,000 Stock dividend to be distributed 50,000 Gain on stock dividend 100,000 d. Retained earnings 50,000 Stock dividend to be distributed 50,000 20. As of the date of the financial statements, the number of common shares issued will exceed the number of shares outstanding as a result of to the declaration of a division or fractionation of shares (stock split). b. the declaration of a dividend in shares (stock dividend) c. the purchase of portfolio shares (treasury stock), d. the payment of bonds payable

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