Answered: Complete the below table to calculate…

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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Question

The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following:


Common stock, $1 par; authorized, 8 million shares; issued and outstanding, 3 million shares	$	3,000,000
Paid-in capital—excess of par		12,000,000
Retained earnings		14,000,000

On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $30 on April 1, 2021, and $40 on June 1, 2021.

Required:
Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.

Complete the below table to calculate the stock dividend.

Stock Dividend
Number of outstanding shares
Stock dividend percentage (%)		%
Number of shares to be issued
Choose from list below***
Value of stock dividend	$0

*** Options are:

x Par Value Per Share

x Market Value on April 1

x Market Value on June 1

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