Question: Douglas McDonald Company s balance sheet included the following

Douglas McDonald Company's balance sheet included the following shareholders' equity accounts at December 31, 2010:
On March 16, 2011, a 4% common stock dividend was declared and distributed. The market value of the common stock was $21 per share. Fractional share rights represented 2 million equivalent whole shares. Cash was paid in lieu of the fractional share rights.

1. What is a fractional share right?
2. Prepare the appropriate entries for the declaration and distribution of the stock dividend.

View Solution:

Sale on SolutionInn
  • CreatedJuly 05, 2013
  • Files Included
Post your question