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he shareholders’ equity of Raven Company is as shown:   RAVEN COMPANY Partial Balance Sheet 1 Common stock, $10 par $300,000.00 2 Additional paid-in capital on common stock 200,000.00 3 Retained earnings 200,000.00 4   $700,000.00       Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 per share. Required: 1. Assuming the board of directors recommends a 6% stock dividend, prepare: a. the journal entry at the date of declaration b. the journal entry at the date of issuance c. shareholders’ equity after the issuance

he shareholders’ equity of Raven Company is as shown:   RAVEN COMPANY Partial Balance Sheet 1 Common stock, $10 par $300,000.00 2 Additional paid-in capital on common stock 200,000.00 3 Retained earnings 200,000.00 4   $700,000.00       Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 per share. Required: 1. Assuming the board of directors recommends a 6% stock dividend, prepare: a. the journal entry at the date of declaration b. the journal entry at the date of issuance c. shareholders’ equity after the issuance

FINANCIAL ACCOUNTING
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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The shareholders’ equity of Raven Company is as shown:
 
RAVEN COMPANY
Partial Balance Sheet
1
Common stock, $10 par
$300,000.00
2
Additional paid-in capital on common stock
200,000.00
3
Retained earnings
200,000.00
4
 
$700,000.00
 
 
 
Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 per share.
Required:
1. Assuming the board of directors recommends a 6% stock dividend, prepare:
a. the journal entry at the date of declaration
b. the journal entry at the date of issuance
c. shareholders’ equity after the issuance
2. Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1.
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