Crystal Corporation has the following information regarding its common stock: $10 par, with 500,000 shares authorized, 213,000
Question:
$10 par, with 500,000 shares authorized, 213,000 shares issued, and 183,700 shares out- standing.
On August 22, 2011, Crystal declared and paid a 15 percent stock dividend when the market price of the common stock was $30 per share.
Required:
1. Prepare the journal entries to record declaration and payment of this stock dividend.
2. Prepare the journal entries to record declaration and payment assuming it was a 30 percent stock dividend.
Common Stock
Common 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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Stock dividend 015 183700 outstanding shares 27555 shares Amount of dividend 30 27555 shares ...View the full answer
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Related Book For 
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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