On October 1, the board of directors of Colorado Outfitters, Inc , declares a stock dividend on its 20,000, $1 par, common shares The market price of the common stock is $40 on this date Required 1 Record the stock dividend assuming a small (5 ) stock dividend 2 Record the stock dividend assuming a...

Requirement 1 September 1 Stock Dividends 20000 x 5 x 40 40000 Common Stock 20000 x 5 x 1 100 ...

On October 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its

Question:

On October 1, the board of directors of Colorado Outfitters, Inc., declares a stock on its 20,000, $1 par, common shares. The market price of the is $40 on this date.

Required:
1. Record the stock assuming a small (5%) stock Record the stock assuming a large (100%) stock Record the stock assuming a 2-for-1 stock split.

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...