The shareholders' equity of Raven Company is as shown:
Common stock, $ 10 par .............. $250,000
Additional paid-in capital on common stock ....... 150,000
Retained earnings ................ 200,000
Raven is considering, the declaration and issuance of a stock dividend at a time when the market price is $30 per share. Required:
1. Assuming the board of directors recommends a 6% stock dividend, prepare:
a. the journal entry at the date of declaration
b. the journal entry at the date of issuance
c. shareholders’ equity after the issuance
2. Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1.

  • CreatedOctober 05, 2015
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