Question: Part C: Dave Inc. declared 40% stock dividend on its 120,000 outstanding common shares (with a par value of $5 per share) on September 10,

Part C: Dave Inc. declared 40% stock dividend on its 120,000 outstanding common shares (with a par value of $5 per share) on September 10, 2021. The stock was trading for $35 at the declaration date. The stock were distributed in form of dividend on October 20, 2021.

Prepare journal entries on September 10 and October 20, 2021. What is the equivalent stock split of this 40% stock dividend?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1. Investigate SCR's Web site and learn about the company's history, purpose, and values. Is the site user-friendly? Why or why not? Provide at least four improvements you would suggest to Jesse. 2....

Dave Inc. declared 40% stock dividend on its 120,000 outstanding common shares (with a par value of $5 per share) on September 10, 2021. The stock was trading for $35 at the declaration date. The...

dave inc. declared 40% stock dividend on its 120,000 outstanding common shares (with a par value of $5 per share) on september 10 2021. the stock was trading for $35 at the declaration date. the...

Problem 1: Journalize the following selected transactions completed during the current fiscal year: Mar. 4 The board of directors of New Town, Inc. declared a stock split that reduced the par of...

A B 1 2 Instructions 3 Pane in the Glass Company (Pane) is a glass manufacturer based out of California. They produce 4 a number of glass products including car windows and windshields, windows for...

On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 24.000, $15 pan common shares. The market price of the common stock is $44 on this date....

Q6. a. Two companies are financed as follows: X Co. Y Co. Bonds payable, 9% issued at face $5,000,000 $3,000,000 Common stock, $25 par 3,000,000 3,000,000 Income tax is estimated at 40% of income for...

Congo Corp has the following capital structure at the beginning of this year Preferred shiss 5250 no par velon cumulative 6,000 shares issued and outstanding Common shares, no par value 00.000 shares...

help with 3rd transaction. help with diluted. Through the payment of $15,216,500 in cash, Drexel Company acquires voting control over Young Company. This price is paid for 60 percent of the...

On January 1, 2018, Fascom had the following account balances in its shareholders' equity accounts Common stock. Si par. 250,000 shares issued Paid-in capital excess of par, common Paid-in capital...

Problem 1: Journalize the following selected transactions completed during the current fiscal year. Mar. 4 The board of directors of New Town, Inc, declared a stock split that reduced the par of...

This is a continuation of the minor project. Use the company you chose for the Minor Project and evaluate the firm using the tools from class. You need to determine the following: The value of the...

Distinguish between the FTP and TELNET protocols.

Question 4 4 2 pts General Data Protection Regulation ( GDPR ) rules are designed to limit the amount of personal data that large technology companies can collect without the consent of users....

6. Utah Co. sold $9,000 of merchandise to Big Sky Corporation on December 1, 2018. Utah accepted a promissory note for payment in the amount of $9,000. The note has a term of six months and a stated...