Question

The stockholders’ equity for Shami, Inc., on December 31, 2011, follows:
Stockholders’ Equity
Paid-in Capital:
Common Stock, $1 par, 900,000 shares authorized,
30,000 issued and outstanding........ . $ 30,000
Paid-in Capital in Excess of Par.......... 120,000
Total Paid-in Capital.............. 150,000
Retained Earnings.............. 330,000
Total Stockholders’ Equity.......... $480,000

On August 31, 2012, the market price of Shami, Inc.’s, common stock was $22 per share and the company distributed a 20% stock dividend.

Requirements
1. Journalize the declaration and distribution of the stock dividend.
2. Prepare the stockholders’ equity section of the balance sheet after the stock dividend..



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  • CreatedApril 29, 2014
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