Akaman Auto, Inc., is authorized to issue 600,000,000 shares of $10 par common stock. The company issued
Question:
Akaman Auto, Inc., is authorized to issue 600,000,000 shares of $10 par common stock. The company issued 70,000 shares at $12 per share, and all 70,000 shares are outstanding. When the market price of common stock was $22 per share, Akaman Auto, Inc., declared and distributed a 10 percent stock dividend. Later, Akaman Auto, Inc., declared and paid a $0.45 per share cash dividend.
Requirements
1. Journalize the declaration and distribution of the stock dividend.
2. Journalize the declaration and the payment of the cash dividend?
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Req 1 Journal Date ACCOUNTS POST Dr Cr REF Retained earnings or Dividends 70000 shares x 10 x 2...View the full answer
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