Chadwick Corporation has 450,000 common shares outstanding. The corporation declares a 6% stock dividend when the shares'

Question:

Chadwick Corporation has 450,000 common shares outstanding. The corporation declares a 6% stock dividend when the shares' fair value is $30 per share (their carrying value is $18 per share). Prepare the journal entries for the company for both the date of declaration and the date of distribution.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting Volume 2

ISBN: 9781119497042

12th Canadian Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

Question Posted: