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Michel Inc. has common stock, $4 par value: 100,000 authorized shares; 25,000 issued and outstanding shares at $9 per share Michel Inc. declares a 2% stock dividend when the market price is $12 a share. What is the journal entry that should be recorded record a proper journal entry. O Stock Dividend 6,000 Cash 6,000 O Stock Dividend 6,000 Stock Dividend Payable 6.000 O Stock Dividend Payable 500 Stock Dividend 500 O Cash Dividend 25,000 Cash Dividend Payable 25,000 O No Journal Entry Necssary Michel Inc. has common stock, $4 par value: 100,000 authorized shares; 25,000 issued and outstanding shares at $9 per share Michel Inc. declares a 2% stock dividend when the market price is $12 a share. How many shares of common stock will be declared as the stock dividend? O 2,000 shares O 300,000 shares O 6,000 shares O 500 shares Amber Corporations has 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9. They declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the stock dividend is to O increase common stock, and increase paid-in capital O decrease common stock, and decrease paid- in capital O decrease common stock, and increase paid- in capital O increase common stock, and decrease paid- in capital The primary purpose of a stock split is to O increase paid-in capital O reduce the market price of the stock per share O increase the market price of the stock per share O increase retained earnings Philmont Inc. 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: O 60,000 O 10,000 O 300,000 O 30,000

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