Using the same facts as in RE17-9, assume instead that Ruby declares and issues a 50% stock dividend when the stock is selling for $30 per share. Prepare the journal entry on the date of declaration to record Ruby Corporation’s stock dividend.
In RE17-9, Ruby Corporation declares and issues a 15% stock dividend. On the date of declaration, the stock is selling for $30 per share. Assuming that there were 50,000 shares previously outstanding, with a $10 par value, prepare the journal entry on the date of declaration to record Ruby Corporation’s stock dividend.