Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company with 93,000 authorized shares of $7 par common stock issued 49,000 shares at $15. Subsequently, the company declared a 2% stock dividend on

A company with 93,000 authorized shares of $7 par common stock issued 49,000 shares at $15. Subsequently, the company declared a 2% stock dividend on a date when the market price was $29 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

$28,420

$6,860

$53,940

$21,560

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing Real Issues And Cases

Authors: Michael C. Knapp

8th Edition

0538466790, 9780538466790

More Books

Students also viewed these Accounting questions