Hodges, Inc. has ten million shares of $5 par value common stock authorized. Of that amount, 4.6

Question:

Hodges, Inc. has ten million shares of $5 authorized. Of that amount, 4.6 million have been issued and 4.2 million are outstanding. On July 2, Hodges declared a 5 percent stock to shareholders of record on July 31, distributable on August 8. On July 2, Hodges stock was trading at $18 per share.
Required:
(a) Related to this stock will the balance in any of the following accounts be affected? Explain.
(1) Cash
(2) Retained Earnings
(3) Treasury Stock
(b) How many shares are held by Hodges in the treasury? Will those shares receive the Why or why not?
(c) How many shares will be distributed in the stock Record the journal entries related to this stock on the following dates:
(1) July 2
(2) July 31
(3) August 8
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... 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...