Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cash Dividend - A corporation has the following shares outstanding: 8,000 shares of $50 par value, six percent preferred stock 50,000 shares of $1 par
- Cash Dividend - A corporation has the following shares outstanding:
- 8,000 shares of $50 par value, six percent preferred stock
- 50,000 shares of $1 par value common stock.
At year-end, the company declares a cash dividend of $134,000.
Required: Prepare the journal entry to declare and distribute the cash dividend.
- Stock Dividend A corporation has 80,000 shares of $5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $20 per share.
Required:
a) Prepare the journal entry to declare and issuance the above stock dividend.
b) Assume that the company declared a 30 percent stock dividend rather than a five percent stock dividend. Prepare the journal entry to declare and issuance the above stock dividend.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started