Augusta Corporation reported the following information 35,000 shares of $3 par value common stock authorized, 30,000 shares common stock issued, 10,000 shares treasury stock Required 1 What is the appropriate journal entry to record a 5 stock dividend if the market price of the common stock is $40 ...

1 Journal Date Account and Explanation Debit Credit Retained Earnings 20000 5 40 4 ...

Augusta Corporation reported the following information: 35,000 shares of $3 par value common stock authorized, 30,000 shares

Question:

Augusta reported the following information: 35,000 shares of $3 authorized, 30,000 shares issued, 10,000 shares treasury stock.
Required:
1. What is the appropriate journal entry to record a 5% stock if the market price of the is $40 per share when the is declared?
2. What is the appropriate journal entry to record a 20% stock if the market price of the is $40 per share when the is declared?
3. How do these transactions affect Augusta's total stockholders' equity?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... 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,...