On January 1 2013 Sugar Company has issued 140,000 shares of its 1 par value common stock
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On January 1 2013 Sugar Company has issued 140,000 shares of its 1 par value common stock for 660,000 and 50,400 of its 100 par value preferred stock for 574,000 the retained earnings at this date is 940,400 Sugar Company declares and distributes a 2 for 1 stock split effected in the form of a 100 stock dividend when the market value of the 1 par common stock is 11 per share Sugar Company has chosen to record the dividend by reducing paid in capital excess of par. What amount of the proceeds should be allocated to Sugar convertible preferred stock?
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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