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Required information Problem 11-27A (Algo) Recording and reporting stock dividends LO 11-4, 11-6, 11-7 [The following information applies to the questions displayed below.] Brice Company

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Required information Problem 11-27A (Algo) Recording and reporting stock dividends LO 11-4, 11-6, 11-7 [The following information applies to the questions displayed below.] Brice Company completed the following transactions in Year 1, the first year of operation: 1. Issued 46,000 shares of no-par common stock for $15 per share. 2. Issued 8,600 shares of $25 par, 6 percent, preferred stock for $25 per share. 3. Paid a cash dividend of $12,900 to preferred shareholders. 4. Issued a 10 percent stock dividend on no-par common stock. The market value at the dividend declaration date was $20 per share. 5. Later that year, issued a 2 -for-1 split on the shares of outstanding common stock. The market price of the stock at that time was $60 per share. 6. Produced $200,000 of cash revenues and incurred $90,000 of cash operating expenses. 7. Closed the revenue, expense, and dividend accounts to retained earnings. Problem 11-27A (Algo) Part a

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