Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lisbon Corp. has 1,000,000 no par common shares authorized, of which 800,000 shares are outstanding. The average carrying value of the shares is $5 per

Lisbon Corp. has 1,000,000 no par common shares authorized, of which 800,000 shares are outstanding. The average carrying value of the shares is $5 per share. When the market value was $10 per share, Lisbon declared a 10% stock dividend. What entry, if any, should Lisbon make to record this dividend declaration?

DR Stock Dividends Payable: $800,000

CR Common Stock Dividend Distributable $800,000

No entry is required to be made.

DR Retained Earnings: $800,000

CR Common Stock Dividend Distributable $800,000

DR Retained Earnings: $400,000

CR Common Stock Dividend Distributable $400,000

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

Corporate Finance Principles And Practice

Authors: Denzil Watson, Tony Head

1st Edition

0273630083, 978-0273630081

More Books

Students also viewed these Finance questions

Question

What are the typical duties of a special servicer?

Answered: 1 week ago