Question

Bower Corporation reported the following information: common stock, $1 par; 50,000 shares authorized; 35,000 shares issued and outstanding.

Required:
1. What is the appropriate journal entry to record a 10 percent stock dividend if the market price of the common stock is $30 per share when the dividend is declared?
2. What is the appropriate journal entry to record a 30 percent stock dividend if the market price of the common stock is $30 per share when the dividend is declared?
3. How do these transactions affect Bower’s total stockholders’ equity?


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  • CreatedSeptember 22, 2015
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