Bower Corporation reported the following information: common stock, $1 par; 50,000 shares authorized; 35,000 shares issued and
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1. What is the appropriate journal entry to record a 10 percent stock dividend if the market price of the common stock is $30 per share when the dividend is declared?
2. What is the appropriate journal entry to record a 30 percent stock dividend if the market price of the common stock is $30 per share when the dividend is declared?
3. How do these transactions affect Bower’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...
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Journal Date Account and Explanation Debit Credit 1 Retained Earnings 105000 Common Stock 3500 ...View the full answer
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Related Book For 
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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