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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 11-15A (Algo) Accounting for stock dividends LO 11-7
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.
Complete this question by entering your answers in the tabs below.
Required C
Required A Required
Compute the amount of the stock dividend.
Block dividend
Transcribed Image Text:Exercise 11-15A (Algo) Accounting for stock dividends LO 11-7 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. Complete this question by entering your answers in the tabs below. Required C Required A Required Compute the amount of the stock dividend. Block dividend
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