eBook Oct. 31. Declared semiannual dividends of $1.60 per share on the preferred stock and $0.13 per share on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36. Oct. 31 Cash Dividends Cash Dividends Payable Oct. 31 Stock Dividends Stock Dividends Distributable 0 0 30,780 X 0 0 15,600 X Paid-In Capital in Excess of Par-Common Stock 0 Feedback Check My Work On the date of declaration of a cash dividend, it becomes legally binding. How do stock dividends affect stockholders' equity? Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend. Dec. 31 Cash Dividends Payable Cash Dec. 31 Stock Dividends Distributable Common Stock Feedback Check My Work What are the stockholders receiving? Feedback 75,600 X 0 0 ✓ 30,780 X 0 0 ✓

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Oct. 31. Declared semiannual dividends of $1.60 per share on the preferred stock and $0.13 per share on the common stock (before the stock dividend). In addition, a 2% common
stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36.
Oct. 31 Cash Dividends
Cash Dividends Payable
Oct. 31 Stock Dividends
Stock Dividends Distributable
0
0
30,780 X
0
0
15,600 X
Paid-In Capital in Excess of Par-Common Stock
0
Feedback
Check My Work
On the date of declaration of a cash dividend, it becomes legally binding. How do stock dividends affect stockholders' equity?
Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend.
Dec. 31 Cash Dividends Payable
Cash
Dec. 31 Stock Dividends Distributable
Common Stock
Feedback
Check My Work
What are the stockholders receiving?
Feedback
75,600 X
0
0 ✓
30,780 X
0
0
✓
Transcribed Image Text:eBook Oct. 31. Declared semiannual dividends of $1.60 per share on the preferred stock and $0.13 per share on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36. Oct. 31 Cash Dividends Cash Dividends Payable Oct. 31 Stock Dividends Stock Dividends Distributable 0 0 30,780 X 0 0 15,600 X Paid-In Capital in Excess of Par-Common Stock 0 Feedback Check My Work On the date of declaration of a cash dividend, it becomes legally binding. How do stock dividends affect stockholders' equity? Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend. Dec. 31 Cash Dividends Payable Cash Dec. 31 Stock Dividends Distributable Common Stock Feedback Check My Work What are the stockholders receiving? Feedback 75,600 X 0 0 ✓ 30,780 X 0 0 ✓
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