The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 4 million shares; issued and outstanding, 1 million shares $ 1,000,000 Paid-in capital—excess of par 4,000,000 Retained earnings 14,000,000 On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $24 on April 1, 2021, and $34 on June 1, 2021. Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.
The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 4 million shares; issued and outstanding, 1 million shares $ 1,000,000 Paid-in capital—excess of par 4,000,000 Retained earnings 14,000,000 On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $24 on April 1, 2021, and $34 on June 1, 2021. Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following:
| Common stock, $1 par; authorized, 4 million shares; issued and outstanding, 1 million shares |
$ | 1,000,000 | |
| Paid-in capital—excess of par | 4,000,000 | ||
| 14,000,000 | |||
On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $24 on April 1, 2021, and $34 on June 1, 2021.
Required:
Complete the below table to calculate the stock dividend. Prepare the
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