The shareholders' equity of Raven Company is as shown: Common stock, $ 10 par .............. $250,000 Additional

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The shareholders' equity of Raven Company is as shown:
Common stock, $ 10 par .............. $250,000
Additional paid-in capital on common stock ....... 150,000
Retained earnings ................ 200,000
$600,000
Raven is considering, the declaration and issuance of a stock dividend at a time when the market price is $30 per share. Required:
1. Assuming the board of directors recommends a 6% stock dividend, prepare:
a. the journal entry at the date of declaration
b. the journal entry at the date of issuance
c. shareholders’ equity after the issuance
2. Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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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Related Book For  answer-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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