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Sheridan Company has 80,000 common shares outstanding. Because it wants to retain its cash for other purposes, the company decided to issue stock dividends to its shareholders. The market price of each Sheridan Company share was $24. (a) Prepare the journal entries if the company decides to declare and issue a 9% stock dividend. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account and Explanation When declared: When issued: Debit Credit

Sheridan Company has 80,000 common shares outstanding. Because it wants to retain its cash for other purposes, the company decided to issue stock dividends to its shareholders. The market price of each Sheridan Company share was $24. (a) Prepare the journal entries if the company decides to declare and issue a 9% stock dividend. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account and Explanation When declared: When issued: Debit Credit

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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Sheridan Company has 80,000 common shares outstanding. Because it wants to retain its cash for other purposes, the company decided to issue stock dividends to its shareholders. The market price of each Sheridan Company share was $24. (a) Prepare the journal entries if the company decides to declare and issue a 9% stock dividend. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account and Explanation When declared: When issued: Debit Account and Explanation Credit Prepare the journal entry if instead of declaring the stock dividend the company decides to split its shares two-for-one. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List debit entry before credit entry.) Debit Credit
Transcribed Image Text:Sheridan Company has 80,000 common shares outstanding. Because it wants to retain its cash for other purposes, the company decided to issue stock dividends to its shareholders. The market price of each Sheridan Company share was $24. (a) Prepare the journal entries if the company decides to declare and issue a 9% stock dividend. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account and Explanation When declared: When issued: Debit Account and Explanation Credit Prepare the journal entry if instead of declaring the stock dividend the company decides to split its shares two-for-one. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List debit entry before credit entry.) Debit Credit
What should happen to the market price of the company's shares if the company decides to declare and issue a 9% stock dividend? (Round answer to 2 decimal places, e.g. 24.62.) Share price after the 9% stock dividend $ What should happen to the market price of the company's shares if instead of declaring the stock dividend the company decides to split its shares two-for-one? (Round answer to 2 decimal places, e.g. 24.62.) Share price after a 2-for-1 stock split $
Transcribed Image Text:What should happen to the market price of the company's shares if the company decides to declare and issue a 9% stock dividend? (Round answer to 2 decimal places, e.g. 24.62.) Share price after the 9% stock dividend $ What should happen to the market price of the company's shares if instead of declaring the stock dividend the company decides to split its shares two-for-one? (Round answer to 2 decimal places, e.g. 24.62.) Share price after a 2-for-1 stock split $
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