Bowman Corporation reported the following information: Common stock , $3 par, 10,000 shares authorized 5,000 shares issued

Question:

Bowman Corporation reported the following information: Common stock, $3 par, 10,000 shares authorized 5,000 shares issued and outstanding.

Required:

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?

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...