Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. goforth company has 1,000,000 shares of $.10 par c

Goforth Company has 1,000,000 shares of $.10 par common stock issued and outstanding. The board...

70.2K

Verified Solution

Question

Accounting

image
Goforth Company has 1,000,000 shares of $.10 par common stock issued and outstanding. The board of directors declares an 8% stock dividend when the market value of the stock is $100. Which of the following statement is true? a. The entry to record the declaration will include a credit to Common Stock for $8,000. b. Retained Earnings will decrease by $8,000,000. c. The entry to record the distribution of the shares will increase Additional Pajid in Capital in Excess of Par-Common Stock by $7,992,000 d. Retained Earnings will decrease by $800,000 and Total Paid in Capital will increase by the same amount

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

The Ellis Corporation has heavy lease commitments. Prior to SFAS No. 13, it merely footnoted lease...

Advance Math
1.2K views

Sometimes a constant equilibrium solution has the property that solutions lying on one side of the...

Chemistry
1.2K views

copper (II) oxide reacts with hydrogen gas to produce copper and water, what volume of H2...

Physics
1.2K views

A 0 400 kg block on a horizontal frictionless surface is attached to an ideal...

Physics
1.2K views

4 All of the above If a magnet of pole strength m is cut into...

Basic Math
1.2K views

4 points Consider a vibrating system described by the initial value problem x t 4x...

Basic Math
1.2K views

True or false? A larger sample size produces a longer confidence interval for ?. False....

Basic Math
1.2K views

An investment of $135,000 was made by a business club. The investment was split into...

Statistics
1.2K views

Complete parts a through h for the data below 1 1 2 4 1 3...

Accounting
1.2K views

****** Scenario 5: Estimated Taxes and Underpayment Penalties Wages: None...

Accounting
1.2K views

Dividends reduce Retained Earnings on the date of O payment O record O declaration none...

Finance
1.2K views

Michael Cnonarin Comnaricon ( Fill in the blank: Scenario analysis is made up of several...