Fundamental Accounting Principles
Fundamental Accounting Principles
24th Edition
ISBN: 9781259916960
Author: Wild, John J., Shaw, Ken W.
Publisher: Mcgraw-hill Education,
Question
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Chapter 13, Problem 8E
To determine

Concept Introduction:

Stock Dividend:

Stock Dividend is a corporate action taken to provide dividends to shareholders in the form of Stocks, its usually declared as a Percentage of Current outstanding shares, which will be issued at market value or par value, depending on percent of shares to be issued. In case the percentage is 20-25% it will be large stock dividend and will be distributed at par value.

Requirement 1

Journal Entry for Declaration and Distribution of Stock Dividend

To determine

Concept Introduction

Stock Dividend:

Stock Dividend is a corporate action taken to provide dividends to shareholders in the form of Stocks, its usually declared as a Percentage of Current outstanding shares, which will be issued at market value or par value, depending on percent of shares to be issued.In case the percentage is 20-25% it will be large stock dividend and will be distributed at par value.

Requirement 1

Equity Section of Balance Sheet after stock Dividend is declared.

Blurred answer

Chapter 13 Solutions

Fundamental Accounting Principles

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