Question
The shareholders equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 9 million shares; issued and outstanding,
The shareholders equity of Core Technologies Company on June 30, 2020, included the following:
| Common stock, $1 par; authorized, 9 million shares; issued and outstanding, 4 million shares | $ | 4,000,000 | |
| Paid-in capitalexcess of par | 16,000,000 | ||
| Retained earnings | 18,000,000 | ||
On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies common stock was $40 on April 1, 2021, and $50 on June 1, 2021. Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
