Reference no: EM132962607

Metrus Inc. had 300,000 common shares outstanding on January 1. The company declared a 2% stock dividend on March 15 to all common shareholders of record as of March 20. The shares were issued on March 31. The market value of the shares was as follows: March 15, $1.25; March 20, $1.20; March 31, $1.30

Problem 1: Which of the following components would be part of the compan's entry on date of issue?

Option 1: Credit to common share of $7,200

Option 2: Credit to common share of $6,000

Option 3: Credit to common share of $7,500

Option 4: Credit to common share of $7,500

Option 5: Credit to common share of $7,800