Douglas McDonald Company?s balance sheet included the followingshareholders? equity accounts at December 31, 2020: ($ in millions)
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Question:
Douglas McDonald Company?s balance sheet included the followingshareholders? equity accounts at December 31, 2020:
($ in millions) | |||
Paid-in capital: | |||
Common stock, 1,800 million shares at $1 par | $ | 1,800 | |
Paid-in capital?excess of par | 17,600 | ||
Retained earnings | 16,238 | ||
Total shareholders? equity | $ | 35,638 | |
On March 16, 2021, a 4% common stock dividend was declared anddistributed. The market value of the common stock was $39 pershare. Fractional share rights represented 2 million equivalentwhole shares. Cash was paid in lieu of the fractional sharerights.Required:1. Complete the below table to calculate the value of sharesissued.2. Prepare the appropriate entries for the declaration anddistribution of the stock dividend.
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