A (Basic stock On December as entry) 31, 2020, Talbot Corporation's common shares had a market price of $25 per share before any stock dividend or split, and the shareholders' equity section of the balance sheet appeared as follows: Common shares: unlimited shares authorized, 40,000 shares issued and outstanding $ 742,000 Retained earnings 1,500,000 Total shareholders' equity $2,242,000 On December 31, 2020, the board of directors of Talbot Corporation declared a 20% stock dividend. On January 15, 2021, the new shares were issued. Required a. Prepare the journal entries to record the stock dividend. b. Determine the balance in Retained Earnings after the stock dividend
A (Basic stock On December as entry) 31, 2020, Talbot Corporation's common shares had a market price of $25 per share before any stock dividend or split, and the shareholders' equity section of the balance sheet appeared as follows: Common shares: unlimited shares authorized, 40,000 shares issued and outstanding $ 742,000 Retained earnings 1,500,000 Total shareholders' equity $2,242,000 On December 31, 2020, the board of directors of Talbot Corporation declared a 20% stock dividend. On January 15, 2021, the new shares were issued. Required a. Prepare the journal entries to record the stock dividend. b. Determine the balance in Retained Earnings after the stock dividend
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:AP11-8A (Basic stock dividends entry)
On December 31, 2020, Talbot
Corporation's common shares had a
market price of $25 per share before
any stock dividend or split, and the
shareholders' equity section of the
balance sheet appeared as follows:
Common shares: unlimited shares
authorized, 40,000 shares issued and
outstanding $742,000 Retained
earnings 1,500,000 Total shareholders'
equity $2,242,000 On December 31,
2020, the board of directors of Talbot
Corporation declared a 20% stock
dividend. On January 15, 2021, the
new shares were issued.
Required
a. Prepare the journal entries to record
the stock dividend.
b. Determine the balance in Retained
Earnings after the stock dividend
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