On December 15, your company declared a 10% stock dividend on common stock. The stock dividend will
Question:
On December 15, your company declared a 10% stock dividend on common stock. The stock dividend will be distributed on January 10, 2022 before 2021 financial statements will be issued.
Your company has 50,000 shares of $6.50 par value common stock authorized. The common stock was selling for $37 per share throughout the entire last quarter of 2021.
According to the Preliminary Trial Balance, Common Stock has a $65,000 credit balance, Paid in the capital - Common Stock has a $26,400 credit balance, and Retained Earnings has $86,450 credit balance.
According to the Post Closing Trial Balance, Common Stock has a $65,000 credit balance, Paid in the capital - Common Stock has a $65,000 credit balance, and Retained Earnings has $86,450 credit balance.
Prepare end of year adjusting entries, corrections, and any other necessary entries necessary to prepare accurate financial statements.
Expert Answer:
Solution When a company issue a stock dividend there is no change in the total equity shareholder fu... View the full answer
