Question
Exercise 10-70 Stock Dividend The balance sheet of Cohen Enterprises includes the following stockholders' equity section: Common stock, $1 par, 330,000 shares authorized, 150,000 shares
Exercise 10-70 Stock Dividend
The balance sheet of Cohen Enterprises includes the following stockholders' equity section:
Common stock, $1 par, 330,000 shares authorized, 150,000 shares issued and outstanding | $150,000 |
Additional paid-in capitalcommon stock | 341,800 |
Total capital stock | $491,800 |
Retained earnings | 173,000 |
Total equity | $664,800 |
Required:
1. On April 15, 2019, when its stock was selling for $18 per share, Cohen Enterprises issued a small stock dividend. After making the journal entry to recognize the stock dividend, Cohen's total capital stock increased by $270,000. In percentage terms, what was the size of the stock dividend? %
2. Ignoring the small stock dividend discussed in Requirement 1, assume that on June 1, 2019, when its stock was selling for $22 per share, Cohen issued a large stock dividend. After making the journal entry to recognize the stock dividend, Cohen's retained earnings decreased by $75,000. In percentage terms, what was the size of the stock dividend? %
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