Question

Watson Inc. reported the following excerpts from shareholders' equity on January 1, 2021: Preferred shares, 0.90, 300,000 issued and outstanding: $6,000,000 Common shares, 400,000 issued and outstanding: $4,400,000 Answer the five (5) following question Q42-Q46 independently. For This Question Only, assume that the company declared/distributed a 5% stock dividend on January 2, 2021 when the market price of the common shares was $10.50 each, prior to this stock dividend. What entry, if any, should Watson make to record this transaction? ? a. No journal entry required for this transaction. Only a proforma entry is required. ? b. DR Retained Earnings, $210,000; CR Common Shares, $210,000 ? c. DR Retained Earnings, $200,000; CR Common Shares, $200,000 ? d. DR Retained Earnings, $220,000; CR Common Shares, $220,000 ? e. DR Retained Earnings, $225,000; CR Common Stock Dividend Distributable, $225,000.

          Watson Inc. reported the following excerpts from shareholders' equity on
January 1, 2021:
Preferred shares, 0.90, 300,000 issued and outstanding: $6,000,000
Common shares, 400,000 issued and outstanding: $4,400,000
Answer the five (5) following question Q42-Q46 independently.
For This Question Only, assume that the company declared/distributed a
5% stock dividend on January 2, 2021 when the market price of the
common shares was $10.50 each, prior to this stock dividend. What entry,
if any, should Watson make to record this transaction?
? a. No journal entry required for this transaction. Only a proforma entry
is required.
? b. DR Retained Earnings, $210,000; CR Common Shares, $210,000
? c. DR Retained Earnings, $200,000; CR Common Shares, $200,000
? d. DR Retained Earnings, $220,000; CR Common Shares, $220,000
? e. DR Retained Earnings, $225,000; CR Common Stock Dividend
Distributable, $225,000.

Watson Inc. reported the following excerpts from shareholders' equity on
January 1, 2021:
Preferred shares, 0.90, 300,000 issued and outstanding: 6,000,000
Common shares, 400,000 issued and outstanding:4,400,000
Answer the five (5) following question Q42-Q46 independently.
For This Question Only, assume that the company declared/distributed a
5% stock dividend on January 2, 2021 when the market price of the
common shares was 10.50 each, prior to this stock dividend. What entry,
if any, should Watson make to record this transaction?
? a. No journal entry required for this transaction. Only a proforma entry
is required.
? b. DR Retained Earnings,210,000; CR Common Shares, 210,000
? c. DR Retained Earnings,200,000; CR Common Shares, 200,000
? d. DR Retained Earnings,220,000; CR Common Shares, 220,000
? e. DR Retained Earnings,225,000; CR Common Stock Dividend
Distributable, 225,000.

Added by Michael Z.

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