Rick Co. had 36 million shares of $3 par common stock outstanding at January 1, 2018. In October 2018, Rick Co.'s Board of Directors declared and distributed a 3% common stock dividend when the market value of its common stock was $57 per share. In recording this transaction, Rick would:

The correct answer is Debit retained earning $61.56 million.

Explanation:

According to the scenario, the computation of the given data are as follows:

Total shares = 36 million

Common stock dividend = 3%

So, Issued share = 36 million × 3% = 1.08 million

So, retained earning = Issued share × Market value

= 1.08 million × $57 = $61.56 million

Where common stock = $3 par

So Common stock value = 1.08 million × $3 = $3.24 million

And capital paid in excess can be calculated as:

capital paid in excess = 1.08 million × ( $57 - $3) = 1.08 million × $54

= $58.32 million

So, the journal entry can be made as:

Retained earning A/c Dr   $61.56 million

To Common stock value A/c $3.24 million

To capital paid in excess A/c $58.32 million

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two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.