The shareholders’ equity of Raven Company is as shown:   RAVEN COMPANY Partial Balance Sheet 1 Common stock, $10 par $300,000.00 2 Additional paid-in capital on common stock 200,000.00 3 Retained earnings 200,000.00 4   $700,000.00

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter7: Financial Activities
Section: Chapter Questions
Problem 3QE: Following is the shareholders equity section of All-Wood Doors on a day a. Use the financial...
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The shareholders’ equity of Raven Company is as shown:
 
RAVEN COMPANY
Partial Balance Sheet
1
Common stock, $10 par
$300,000.00
2
Additional paid-in capital on common stock
200,000.00
3
Retained earnings
200,000.00
4
 
$700,000.00
 
 
 
Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 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
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