Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2023: ($ in millions) Paid-in capital: Common stock, 1,800 million shares at $1 par $ 1,800 Paid-in capital—excess of par 17,600 Retained earnings 16,238 Total shareholders’ equity $ 35,638 On March 16, 2024, a 4% common stock dividend was declared and distributed. The market value of the common stock was $39 per share. Fractional share rights represented 2 million equivalent whole shares. Cash was paid in lieu of the fractional share rights. Complete the below table to calculate the value of shares issued. Prepare the appropriate entries for the declaration and distribution of the stock dividend.
Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2023: ($ in millions) Paid-in capital: Common stock, 1,800 million shares at $1 par $ 1,800 Paid-in capital—excess of par 17,600 Retained earnings 16,238 Total shareholders’ equity $ 35,638 On March 16, 2024, a 4% common stock dividend was declared and distributed. The market value of the common stock was $39 per share. Fractional share rights represented 2 million equivalent whole shares. Cash was paid in lieu of the fractional share rights. Complete the below table to calculate the value of shares issued. Prepare the appropriate entries for the declaration and distribution of the stock dividend.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Douglas McDonald Company’s
| ($ in millions) | |
|---|---|
| Paid-in capital: | |
| Common stock, 1,800 million shares at $1 par | $ 1,800 |
| Paid-in capital—excess of par | 17,600 |
| 16,238 | |
| Total shareholders’ equity | $ 35,638 |
On March 16, 2024, a 4% common stock dividend was declared and distributed. The market value of the common stock was $39 per share. Fractional share rights represented 2 million equivalent whole shares. Cash was paid in lieu of the fractional share rights.
- Complete the below table to calculate the value of shares issued.
- Prepare the appropriate entries for the declaration and distribution of the stock dividend.
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