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Rick Co. had 30 million shares of $1 par common st...

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Question

Rick Co. had 30 million shares of $1 par common stock outstanding at January 1, 2009. In October, 2009, Rick Co.'s Board of Directors declared and distributed a 1% common stock dividend when the market value of its common stock was $60 per share. In recording this transaction, Rick would: A. Debit retained earnings for $18 million B. Credit paid-in capital ? excess of par for $18 million C. Credit common stock for $18 million D. None of these is correct.

 

Paper#11027 | Written in 18-Jul-2015

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