Chek Corporation had outstanding 200,000 shares of $5 par value common stock on August 13, 2016 On that date, it declared a 15 percent common stock dividend distributable on September 15 to stockholders of record on September 1 The estimated fair value of the shares at the time of their issue was $...

GENERAL JOURNAL PAGE DATE DESCRIPTION POST REF DEBIT CREDIT 2016 Aug 13 Retained Earnings 900 0 ...

Chek Corporation had outstanding 200,000 shares of $5 par-value common stock on August 13, 2016. On that

Question:

Chek had outstanding 200,000 shares of $5 par-value on August 13, 2016. On that date, it declared a 15 percent distributable on September 15 to stockholders of record on September 1. The estimated fair value of the shares at the time of their issue was $30 per share. Give any general journal entries necessary on August 13, September 1, and September 15, 2016.
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...