Bower Corporation reported the following information: common stock, $1 par; 100,000 shares authorized; 67,000 shares issued and outstanding. Required: 1. What is the appropriate journal entry to record a 10% stock dividend if the market price of the common stock is $30 per share when the dividend is declared? (Record small stock dividend) 2. What is the appropriate journal entry to record a 30% stock dividend if the market price of the common stock is $30 per share when the dividend is declared? (Record large stock dividend) 3. How do these transactions affect Bower's total stockholders' equity? Total stockholders' equity is by these transactions.

Bower Corporation reported the following information: common stock, $1 par; 100,000 shares authorized; 67,000 shares issued and outstanding. Required: 1. What is the appropriate journal entry to record a 10% stock dividend if the market price of the common stock is $30 per share when the dividend is declared? (Record small stock dividend) 2. What is the appropriate journal entry to record a 30% stock dividend if the market price of the common stock is $30 per share when the dividend is declared? (Record large stock dividend) 3. How do these transactions affect Bower's total stockholders' equity? Total stockholders' equity is by these transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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