Ask Question
2 December, 12:14

A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9. Subsequently, the company declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the stock dividend is to:

A. decrease retained earnings, increase common stock, and increase paid-in capital

B. increase retained earnings, decrease common stock, and decrease paid-in capital

C. increase retained earnings, decrease common stock, and increase paid-in capital

D. decrease retained earnings, increase common stock, and decrease paid-in capital

0
Answers (1)
  1. 2 December, 14:12
    0
    Answer and Explanation:

    A. decrease retained earnings, increase common stock, and increase paid-in capital
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9. Subsequently, the company declared a 2% stock ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers