On February 15, Mite Corporations board of directors declared a 2 percent stock dividend applicable to the outstanding shares of its $10 par value common stock , of which 400,000 shares are authorized, 260,000 are issued, and 40,000 are held in the treasury The stock dividend was distributed on Mar...

Feb 15 Stock Dividends 66000 Common Stock Distributab ...

On February 15, Mite Corporations board of directors declared a 2 percent stock dividend applicable to the

Question:

On February 15, Mite Corporation’s board of directors declared a 2 percent stock applicable to the outstanding shares of its $10 , of which 400,000 shares are authorized, 260,000 are issued, and 40,000 are held in the treasury. The stock was distributed on March 15 to stockholders of record on March 1. On February 15, the market value of the was $15 per share.
On March 30, the board of directors declared a $0.50 per share cash No other stock transactions have occurred. Prepare journal entries to record, as necessary, the transactions of February 15, March 1, March 15, and March 30.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...