To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock dividend.

Question:

To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock dividend. The company has 800,000 shares authorized and 200,000 shares outstanding. The of the stock is $ 1 per share and the market value is $ 100 per share. Prepare the journal entry to record this large stock dividend.
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...