Question

Supreme Water Sports has 12,000 shares of $ 2 par value common stock outstanding. Supreme distributes a 5% stock dividend when the market value of its stock is $ 22 per share.

Requirements
1. Journalize Supreme’s declaration of the stock dividend on August 15 and distribution on August 31.
2. What is the overall effect of the stock dividend on Supreme’s total assets?
3. What is the overall effect on total stockholders’ equity?



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  • CreatedJanuary 16, 2015
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