Hi Tech manufacturing company has 500,000 shares of $1 per value capital stock outstanding on January 1. The following entry transactions occurred during the current year.  June 1 declared a cash dividend of 0.20 per share  Jult 1 paid the $0.20 cash dividend to stockholders. Aug1 declared a 10% stock dividend. Market price of stock was $15 per share Sept 1o issued shares resulting from 10% stock dividend declared on Aug1 a) Write the journal entries b) compute the number of shares of capital stock outstanding at year end

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hi Tech manufacturing company has 500,000 shares of $1 per value capital stock outstanding on January 1. The following entry transactions occurred during the current year. 

June 1 declared a cash dividend of 0.20 per share 

Jult 1 paid the $0.20 cash dividend to stockholders.

Aug1 declared a 10% stock dividend. Market price of stock was $15 per share

Sept 1o issued shares resulting from 10% stock dividend declared on Aug1

a) Write the journal entries

b) compute the number of shares of capital stock outstanding at year end

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