Question: Explain why the accounting for small stock dividends requires that market value, rather than par value, of the shares distributed be charged against retained earnings.

Explain why the accounting for small stock dividends requires that market value, rather than par value, of the shares distributed be charged against retained earnings.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Financial Statement Analysis Questions!

349. Explain why the accounting for small stock dividends requires that market value, rather than par value, of the shares distributed be charged against retained earnings.

Explain why the accounting for small stock dividends requires that market value, rather than par value, of the shares distributed be charged against retained earnings.

Mountainside Marble & Tile has declared a 15% stock dividend. The journal entry on the date of declaration will debit a. Stock Dividends for the market value of the shares to be distributed. b. Stock...

I need this back in an hour. thanks.. 25 multiple choice questions!!! Omit all general journal entry explanations. Be sure to include correct dollar signs, commas, underlines, and double-underlines...

QS 11-7 Accounting for small stock dividends LO P2 Epic Inc. has 10,300 shares of $2 par value common stock outstanding. Epic declares a 8% stock dividend on July 1 when the stock market value is $11...

Record any necessary adjustments to the Equity securities account as a result of the property dividend declaration. Record the declaration of the property dividend. 3 Record the entry on the date of...

4. Which of the following is not a major advantage of a corporate form of organization? Separate legal existence. Continuous life. Government regulations. Transferable ownership rights. 5. ABC...

Im having trouble with the journal entries questions. The first six questions! Can anyone assist? University of Maryland University College Final Examination Acct220: Principles of Accounting I For...

Problem Description : You will be writing classes that represent various parts of a vending machine. You will need to write two files: VendingMachine.java and VendingItem.java . A simple driver class...

The actuary for the pension plan of Joyce Bush Inc. calculated the following net gains and losses. Unrecognized Net Gain or Loss Incurred during the Year (Gain) or Loss...

A petty cash fund with an imprest balance of $ 3 0 0 was established on August 1 . On August 3 1 , tickets totaling $ 1 5 5 were verified. The petty cash custodian had $ 1 5 0 on hand. What is the...

Discuss the two views of the right side of the accounting equation.