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The stockholders' equity section of the balance sheet for Sweet Treats Corporation on September 10, 2022, follows: (Click the icon to view the data.)
The stockholders' equity section of the balance sheet for Sweet Treats Corporation on September 10, 2022, follows: (Click the icon to view the data.) On September 10, 2022, the market price of Sweet Treats common stock was $20 per share. Sweet Treats declared and distributed a 10% stock dividend on this date. Read the requirements. Requirement 1. Journalize the declaration and distribution of the 10% stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) Date September 10 Journal Entry Accounts Debit Credit Data table Stockholders' Equity - Common stock, $0.75 par, 2,000,000 shares authorized, 900,000 shares issued $ 675,000 Paid-in capital in excess of par-common 1,937,280 Retained earnings 7,155,000 Accumulated other comprehensive income (loss) (200,000) $ 9,567,280 Total stockholders' equity Requirements 1. Journalize the declaration and distribution of the stock dividend. 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend. 3. Why is total stockholders' equity unchanged by the stock dividend? 4. Suppose Sweet Treats had a cash balance of $540,000 on September 11, 2022. What is the maximum amount of cash dividends the company can declare?
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