Question

farley corp. has 50,000 shares of $1 par value common stock issued and outstanding. farley declares a 10% stock dividend when the fair value of the stock is $9 per share. which of the following entries will be included in the entries required to record the declaration and payment of the stock dividend? multiple select question. debit stock dividends $45,000. credit common stock $45,000. debit retained earnings $5,000. credit additional paid-in capital $40,000. credit common stock $5,000.

Answer 1

Debit stock dividends $45,000

Credit common stock $5,000

Credit additional paid-in capital $40,000

Step-by-step explanation: