Refer to E11 12 Prepare the journal entry to record (a) the small 12 percent stock dividend and, alternatively, (b) the large 100 percent stock dividend mentioned in requirement 2 of E11 12 Refer E11 12 Common stock (par $10 authorized 60,000 shares, outstanding 25,000 shares) $250,000 Additional p...

a Retained Earnings 25000 x 012 x 18 54000 ...

Refer to E11-12. Prepare the journal entry to record (a) the small 12 percent stock dividend and,

Question:

Refer to E11-12. Prepare the journal entry to record (a) the small 12 percent stock and, alternatively, (b) the large 100 percent stock mentioned in requirement 2 of E11-12.
Refer E11-12
Common stock (par $10; authorized 60,000 shares, outstanding 25,000 shares).. $250,000
Additional paid-in capital………………………………………………………….. 12,000
Retained earnings………………………………………………………………….. 75,000
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...