Company Z has 2.8 million shares of common stock authorized with a par value of $1 and a market price of $66. There are 1.4 million outstanding shares and 0.35 million shares held in treasury stock. Required: a. Prepare the journal entry if the company declares and distributes a 10% stock dividend. b. Show the effect of the 10% stock dividend on assets, liabilities, and stockholders' equity. c. Prepare the journal entry if the company declares and distributes a 100% stock dividend. d. Show the effect of the 100 % stock dividend on assets, liabilities, and stockholders' equity. Complete this question by entering your answers in the table below. Required A Required B Required C Required D Show the effect of the 10% stock dividend millions.) Assets on assets, liabilities, and stockholders' equity. (Enter all amounts as positive values. Enter your answers in dollars and r Stockholders' Equity Liabilities
Company Z has 2.8 million shares of common stock authorized with a par value of $1 and a market price of $66. There are 1.4 million outstanding shares and 0.35 million shares held in treasury stock. Required: a. Prepare the journal entry if the company declares and distributes a 10% stock dividend. b. Show the effect of the 10% stock dividend on assets, liabilities, and stockholders' equity. c. Prepare the journal entry if the company declares and distributes a 100% stock dividend. d. Show the effect of the 100 % stock dividend on assets, liabilities, and stockholders' equity. Complete this question by entering your answers in the table below. Required A Required B Required C Required D Show the effect of the 10% stock dividend millions.) Assets on assets, liabilities, and stockholders' equity. (Enter all amounts as positive values. Enter your answers in dollars and r Stockholders' Equity Liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Company Z has 2.8 million shares of common stock authorized with a par value of $1 and a market price of $66. There are 1.4 million
outstanding shares and 0.35 million shares held in treasury stock.
Required:
a. Prepare the journal entry if the company declares and distributes a 10% stock dividend.
b. Show the effect of the 10% stock dividend on assets, liabilities, and stockholders' equity.
c. Prepare the journal entry if the company declares and distributes a 100% stock dividend.
d. Show the effect of the 100% stock dividend on assets, liabilities, and stockholders' equity.
Complete this question by entering your answers in the table below.
Required A Required B
Required C Required D
Show the effect of the 10% stock dividend on assets, liabilities, and stockholders' equity. (Enter all amounts as positive values. Enter your answers in dollars and r
millions.)
Assets
Liabilities
Stockholders' Equity
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