Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the end of 2021, Your Company decided to issue a 30% stock dividend. At the time of issue, the market price of the stock

At the end of 2021, Your Company decided to issue a 30% stock dividend. At the time of issue, the market price of the stock was $15 per share. Prior to the dividend, the stockholders' equity accounts report the following balances:

Common stock, $2 par, 500,000 shares authorized, 45,000 shares issued and 40,000 shares outstanding

$90,000

Paid in capital in excess of par

546,000

Retained earnings

775,000

What was the dollar amount of the stock dividend?

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_2

Step: 3

blur-text-image_3

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

Fundamental Managerial Accounting Concepts

Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds

8th edition

978-1259569197

More Books

Students also viewed these Accounting questions

Question

Outline the disadvantages of a learning structure.

Answered: 1 week ago