2. The stockholders' equity of A&C Company consisted of the following balances: Common Stock, $10 par,...

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2. The stockholders' equity of A&C Company consisted of the following balances: Common Stock, $10 par, authorized 300,000 shares issued and outstanding 248,000 shares APIC - Common Preferred 5% Stock, $40 par APIC-Preferred Retained Earnings $2,480,000 225,000 1,545,000 125,000 2,075,000 Treasury Stock (at $20 FMV) 240,000 I a) A stock dividend of 10% is declared on common stock when the fair market value is $18. Prepare the JE for the date of declaration of the stock dividend. Ignore any impact on preferred stock. b) After the JE for the stock dividend is posted, what is the balance of the stockholder's equity account? 2. The stockholders' equity of A&C Company consisted of the following balances: Common Stock, $10 par, authorized 300,000 shares issued and outstanding 248,000 shares APIC - Common Preferred 5% Stock, $40 par APIC-Preferred Retained Earnings $2,480,000 225,000 1,545,000 125,000 2,075,000 Treasury Stock (at $20 FMV) 240,000 I a) A stock dividend of 10% is declared on common stock when the fair market value is $18. Prepare the JE for the date of declaration of the stock dividend. Ignore any impact on preferred stock. b) After the JE for the stock dividend is posted, what is the balance of the stockholder's equity account?

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a Journal Entry for the Declaration of Stock Dividend on Common Stock Date Date of Declaration Commo... View the full answer