Shawn Sm Slide Show Record Help Cash and Stock Dividends Example #2 Common Stock-$20 par, 500 shares authorized, 250 shares issued and outstanding Paid-in capital in excess of par, Common Stock Retained eamings Total 0o 0 0 Assume all of the transactions are for the same year. Feb. 15 The board declared a $0.50 cash dividend per share to shareholders of record on Mar. 31. Apr. 15 Paid the cash dividend declared on February 15. May 31Declared a 20% stock dividend. The market value of the stock is $25 per share. 1 Distributed the stock dividend declared on May 31. July Dec 1 Declared a 30% stock dividend. The market value of the stock is $22 per share. Dec. 31Distributed the stock dividend declared on December 1. General Joumal Debit Credit Feb. 15 Mar. 31 Apr. 15 July 1 5. Notes 88 ON3 IN INI
Shawn Sm Slide Show Record Help Cash and Stock Dividends Example #2 Common Stock-$20 par, 500 shares authorized, 250 shares issued and outstanding Paid-in capital in excess of par, Common Stock Retained eamings Total 0o 0 0 Assume all of the transactions are for the same year. Feb. 15 The board declared a $0.50 cash dividend per share to shareholders of record on Mar. 31. Apr. 15 Paid the cash dividend declared on February 15. May 31Declared a 20% stock dividend. The market value of the stock is $25 per share. 1 Distributed the stock dividend declared on May 31. July Dec 1 Declared a 30% stock dividend. The market value of the stock is $22 per share. Dec. 31Distributed the stock dividend declared on December 1. General Joumal Debit Credit Feb. 15 Mar. 31 Apr. 15 July 1 5. Notes 88 ON3 IN INI
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Shawn Sm
Slide Show Record
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Cash and Stock Dividends Example #2
Common Stock-$20 par, 500 shares authorized, 250 shares issued and outstanding
Paid-in capital in excess of par, Common Stock
Retained eamings
Total
0o 0 0
Assume all of the transactions are for the same year.
Feb. 15 The board declared a $0.50 cash dividend per share to shareholders of record on Mar. 31.
Apr. 15 Paid the cash dividend declared on February 15.
May 31Declared a 20% stock dividend. The market value of the stock is $25 per share.
1 Distributed the stock dividend declared on May 31.
July
Dec 1 Declared a 30% stock dividend. The market value of the stock is $22 per share.
Dec. 31Distributed the stock dividend declared on December 1.
General Joumal
Debit
Credit
Feb. 15
Mar. 31
Apr. 15
July 1
5.
Notes
88
ON3
IN
INI
Expert Solution

Step 1
Dividend is the amount of return earned by the shareholders by investing in the shares of the company. It can be in the form of cash or stock.
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