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Douglas McDonald Companys balance sheet included the following shareholders equity accounts at December 31, 2020: ($ in millions) Paid-in capital: Common stock, 1,450 million shares
Douglas McDonald Companys balance sheet included the following shareholders equity accounts at December 31, 2020:
($ in millions) | |||
Paid-in capital: | |||
Common stock, 1,450 million shares at $1 par | $ | 1,450 | |
Paid-in capitalexcess of par | 16,900 | ||
Retained earnings | 15,713 | ||
Total shareholders equity | $ | 34,063 | |
On March 16, 2021, a 4% common stock dividend was declared and distributed. The market value of the common stock was $32 per share. Fractional share rights represented 4 million equivalent whole shares. Cash was paid in lieu of the fractional share rights. Required: 1. Complete the below table to calculate the value of shares issued. 2. Prepare the appropriate entries for the declaration and distribution of the stock dividend.
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