Rollins Corporation issued a 5 percent stock dividend on 10,000 shares of its $10 par common stock.
Question:
Rollins Corporation issued a 5 percent stock dividend on 10,000 shares of its $10 par common stock. At the time of the dividend, the market value of the stock was $14 per share.
Required
a. Compute the amount of the stock dividend.
b. Show the effects of the stock dividend on the financial statements using a horizontal statements model like the followingone.
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Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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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a 10000 shares x 05 500 shares 500 shares x 14 7000 b ...View the full answer
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Related Book For 
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
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