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
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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Question
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 |
b. | the journal entry at the date of issuance |
c. | shareholders’ equity after the issuance |
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