Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of directors declares a 50 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018. Prepare the journal entry.
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of directors declares a 50 percent stock dividend. This stock dividend will be distributed on January 20, 2019 to the stockholders of record on January 15, 2019. The market price of the company's stock is $10 per share on December 31, 2018. Prepare the journal entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mustang Corporation had 100,000
shares of $2 par value common stock
outstanding. On December 31, 2018,
the company's board of directors
declares a 50 percent stock dividend.
This stock dividend will be distributed
on January 20, 2019 to the
stockholders of record on January 15,
2019. The market price of the
company's stock is $10 per share on
December 31, 2018.
Prepare the journal entry.
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