Merino Corporation issued a 4 percent stock dividend on 30,000 shares of its ($10) par common stock.

Question:

Merino Corporation issued a 4 percent stock dividend on 30,000 shares of its $$10$ par common stock.

At the time of the dividend, the market value of the stock was $$25$ per share.

Required:

a. Compute the amount of the stock dividend.

b. Show the effects of the stock dividend on the financial statements using a horizontal statements model like the following one.

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Survey Of Accounting

ISBN: 9780077503956

1st Edition

Authors: Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay

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Question Posted: May 13, 2024 02:02 PM

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Merino Corporation issued a 4 percent stock dividend on 30,000 shares of its ($10) par common stock.

Question:

Assets = Liab. + Com. Stk. + PIC in Excess + Ret. Earn. Rev. - Exp. = Net Inc. Cash Flow

Step by Step Answer:

Survey Of Accounting

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