Rich man co has 160000 shares of 1$ par valuecommon stock outstanding. it declared a 10%stock dividend on february 1 when the marketprice per share was 18$. the record date wasFebruary 8 and the shares were issued onFebruary 151. Required2. Prepare the entries for the stock dividend3. Prepare the closing entry on 12/31assuming no other dividends were issuedand rich man only closes on 12/31

The dividend is declared to the shareholders from the retained earnings of the business. The stock…

Answered: Rich man co has 160000 shares of 1$ par…

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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