Sprague, Inc., has 10,000,000 shares of $ 2 par value common stock authorized and 1,500,000 shares issued and outstanding. The stock had a fair market value of $ 20 per share on November 15, 2010, when the board of directors declared a 5 percent stock dividend to holders of record on November 27, 2010. The new shares were distributed on December 10, 2010. Make the journal entries to record the declaration and distribution of the stock dividend. How are the par value per share, retained earnings, total shareholders’ equity, and number of shares authorized, issued, and outstanding affected by the stock dividend?
Answer to relevant QuestionsUsing the information in E15.9, how would your answer differ if Sprague, Inc., had declared a 50 per-cent stock dividend? On November 1, 2010, Phillips Corporation raised $ 2,382,041.19 by issuing a five- year, $ 3,500,000 noninterest- bearing note. The amortization table for the note follows. Make the entries for the note from November l, ...Using the information from E15.21 and assuming the market rate of interest was 8 percent, make the entries for the first year of the bond’s life and show how Scott would report its bond activities on its 2011 financial ...For each of the following, identify the impact of the proposed event on the assets, liabilities, and share-holders’ equity by using for increases, for decreases, and 0 for no effect. What is depreciation?
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