151. The entry to record the issuance of stock certificates for a common stock dividend that had been declared would include a debit to
A. Common Stock
B. Paid-In Capital in Excess of Par-Common Stock
C. Stock Dividends Distributable
D. Cash
152. A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 a share. What is the amount transferred from the Retained Earnings account to Paid-in Capital accounts as a result of the stock dividend?
A. $12,800
B. $19,200
C. $32,000
D. $48,800
153. Which of the following statements is not true about a 2-for-1 split?
A. Par value per share is reduced to half of what it was before the split.
B. Total contributed capital increases.
C. The market price will probably decrease.
D. A stockholder with ten shares before the split owns twenty shares after the split.
154. A corporation has 50,000 shares of $25 par value stock outstanding that has a current market value of $150. If the corporation issues a 5-for-1 stock split, the market value of the stock will fall to approximately:
A. $25
B. no changed
C. $5
D. $30
155. A corporation has 50,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the par value of the stock will be:
A. $5
B. $60
C. unchanged
D. $24
156. A corporation has 60,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be:
A. 60,000
B. 10,000
C. 300,000
D. 30,000
157. If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to
A. decrease total assets and total stockholders’ equity.
B. reduce the amount of retained earnings available for dividend declarations.
C. increase stockholders’ equity and to decrease total liabilities.
D. decrease total retained earnings and increase total liabilities.