Sealand Company has 80,000 common shares outstanding. Because it wants to use its cash flow for other

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Sealand Company has 80,000 common shares outstanding. Because it wants to use its cash flow for other purposes, the company has decided to issue stock dividends to its shareholders. The market price of each Sealand Company share is $26.
Required:
a. Give the journal entry, if any, if the company decides to issue a 10% stock dividend.
b. Give the journal entry, if any, if the company decides to issue a 100% stock dividend.
c. What should happen to the market price of the company's shares in part "a"? In part "b"?
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Related Book For  book-img-for-question

Financial Accounting A User Perspective

ISBN: 978-0470676608

6th Canadian Edition

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

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