Question : 11) The entry to record the payment of a cash : 1171140

11) The entry to record the payment of a cash dividend would include a:

A) debit to Dividends Payable.

B) debit to Retained Earnings.

C) credit to Cash.

D) Both A and C

12) On the date of record, the journal entry would include:

A) a debit to Dividend Payable.

B) a credit to Dividend Payable.

C) a credit to Cash.

D) No entry is required on date of record.

13) The journal entry to record the issuance of a stock dividend is to:

A) debit Common Stock Dividend Distributable (number of shares × par value common stock); credit Common Stock (same).

B) debit Common Stock Dividends Distributable (number of shares × market value common stock); credit Common Stock (same).

C) debit Retained Earnings (market value × number of shares); credit Common Stock Dividends Distributable (number of shares × par value); credit Paid-in Capital in Excess of Par Value-Stock Dividend.

D) debit Common Stock Dividend Distributable (number of shares × par value); credit Cash.

14) Which of the following is the journal entry to record the declaration of a stock dividend?

A) Debit Common Stock Dividend Distributable (number of shares × par value common stock); credit Common Stock (same)

B) Debit Common Stock Dividend Distributable (number of shares × market value common stock); credit Common Stock (same)

C) Debit Retained Earnings (market value × number of shares); credit Common Stock Dividend Distributable (number of shares × par value); credit Paid-In Capital in Excess of Par Value Stock Dividend (market value – par value) × number of shares

D) Debit Common Stock (number of shares × par value); credit Cash

15) The entry to record the declaration of a stock dividend would include:

A) a debit to Retained Earnings.

B) a credit to Cash.

C) a credit to Common Stock.

D) None of these answers is correct.

16) The entry to record the distribution of the stock dividend would include:

A) a debit to Common Stock.

B) a debit to Common Stock Dividend Distributable.

C) a debit to Retained Earnings.

D) None of these answers is correct.

17) Bailey’s Western Wear has 3,000 shares of $20 par value common stock outstanding. During the current year, the company distributed a 5% stock dividend. The market value of the stock at that time was $15 per share. Bailey’s total stockholders’ equity should increase or decrease by:

A) $0.

B) $1,200.

C) $2,000.

D) ($3,200).

18) Before a three-for-one stock split, the shares outstanding were 4,000 shares at $9 par. After the split, what was the par value per share and number of shares?

A) 12,000 shares at $9 per share

B) 12,000 shares at $3 per share

C) 12,000 shares at $6 per share

D) 4,000 shares at $27 per share

19) XYZ Corporation issued a four-for-one stock split. The number of outstanding shares before the split was 20,000 and the par value was $24 per share. After the split, what was the par value per share and number of shares?

A) 80,000 shares and $24 per share

B) 80,000 shares and $12 per share

C) 80,000 shares and $6 per share

D) 80,000 shares and $18 per share

20) A stock split:

A) causes decrease in the number of shares outstanding.

B) increases the par or stated value in proportion.

C) reduces retained earnings.

D) has no effect on total shareholders’ equity.