On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is: Multiple Choice Debit Retained Earnings $840,000; credit Common Stock $840,000. No entry is made for this transaction. Debit Retained Earnings $840,000; credit Common Stock Split Distributable $840,000.
On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is: Multiple Choice Debit Retained Earnings $840,000; credit Common Stock $840,000. No entry is made for this transaction. Debit Retained Earnings $840,000; credit Common Stock Split Distributable $840,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 4MC: Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys...
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Transcribed Image Text:On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of retained earnings. On
that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal
entry to record this transaction is:
Multiple Choice
Debit Retained Earnings $840,000; credit Common Stock $840,000.
No entry is made for this transaction.
Debit Retained Earnings $840,000; credit Common Stock Split Distributable $840,000.
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