Wallace Corporation issued a 6 percent stock dividend on 30,000 shares of its $10 par value common stock. At the time of the dividend, the market value of the stock was $40 per share. Which of the following shows how the stock dividend will affect Wallace's financial statements?
Balance Sheet Income Statement Statement of Cash Flows
Assets = Common Stock + Additional Paid-in Retained Earnings
Rev. - Exp. = Net Inc.
A. NA = NA + 72,000 (72,000) NA - NA = NA NA
B. NA = 18,000 + 54,000 (72,000) NA - NA = NA NA
C. (72,000) = NA + NA (72,000) NA - NA = NA (72,000) FA
D. NA = (72,000) + 54,000 18,000 NA - NA = NA NA
