Beacon Corporation issued a 6 percent stock dividend on 28,500 shares of its $7 par common stock. At the time of the dividend, the market value of the stock was $24 per share. Required a. Compute the amount of the stock dividend. b. Show the effects of the stock dividend on the financial statements using a horizontal statements model c. Prepare the journal entry to record the stock dividend.

Beacon Corporation issued a 6 percent stock dividend on 28,500 shares of its $7 par common stock. At the time of the dividend, the market value of the stock was $24 per share. Required a. Compute the amount of the stock dividend. b. Show the effects of the stock dividend on the financial statements using a horizontal statements model c. Prepare the journal entry to record the stock dividend.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 12.4BE: Entries for stock dividends Alpine Energy Corporation has 1,500,000 shares of 40 par common stock...

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