Stock Dividends Mammoth Corporation has 100,000 shares of $10 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $30 per share. Three weeks later, the company issues the shares of stock to stockholders. a. Prepare the journal entry for the declaration of the stock dividend. b. Prepare the journal entry for the issuance of the stock dividend. c. Assume that the company declared a 50 percent stock dividend rather than a five percent stock dividend. Prepare the journal entries for (1) the declaration of the stock dividend and (2) the issuance of the stock dividend

Q: A company has the following two classes of stock authorized: 9%, $10 par value preferred and $1 par…

A: Journal entry is a system to record the business transaction in accounting books of an organization.…

Q: Yummy Corporation has the following stockholders' equity accounts on January 1, 2022: S Common…

A: Stockholder's equity: Stockholder's equity is the total amount that belongs to the owners of a…

Q: Prepare the journal entry to record Tamas Company's issuance of 6,800 shares of $100 par value, 8%…

A: 1. Amount to be credited to Preferrred stock = No. of Shares x Par Value  = 6800 x $100 = $ 680000…

Q: 19. A company acquires 1,000 shares of its own $1 par common stock for $15 per share. This purchase…

A: The correct answer is: (D) Debit to treasury stock for $15,000 The treasury stock account is a…

Q: On January 1, Sheffield Corporation had 213000 shares of $10 par value common declared a 14% stock…

A: The dividend is distributed to shareholders from the retained earnings of the business. The stock…

Q: A company has the following two classes of stock authorized: 9%, $10 par value preferred and $1 par…

A: Journal entries to record each transaction is as under:

Q: A company originally issued 17,000 shares of $7 par value common stock at $13 per share. The board…

A: Stock Dividend - Stock Dividend is the dividend declared on the shares issued and outstanding.…

Q: A company had stock outstanding as follows during each of its first 3 years of operations: 1,000…

A: Dividend is the amount of return that an entity has to pay to the shareholders. It is paid to both…

Q: The Watermelon Company has $1,000,000 shares of 10%, $20 Par Value Preferred Stock outstanding. On…

A: 1. Stock Dividend: In this Dividend company issue additional shares to the existing shareholders…

Q: On May 10, Pronghorn Corp. issues 2,200 shares of $4 par value common stock for cash at $14 per…

A: Per share paid in excess=Issue price-Par value=$14-$4=$10

Q: 16) A corporation originally issued $15 par value common stock for $17 per share. Which of the…

A: The journal entries are prepared to record the transactions on a regular basis. The treasury stock…

Q: 4.  Nutritious Pet Food Company’s board of directors declares a large stock dividend (50%) on June…

A: Stock dividends can be attractive to some investors as they provide the opportunity to increase the…

Q: Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value…

A: Solution:- Preparation of journal entries for each transaction as follows:-

Q: A company originally issued 12,000 shares of $10 par value common stock at $11 per share. The board…

A: Note: When stock dividend is issued then retained earnings is decreased by the market value of the…

Q: The board of directors of Capstone Incorporated declared a $0.60 per share cash dividend on its $1…

A: Dividend is the amount of profit distributed to the shares outstanding as on the record date. It…

Q: Selected transactions completed by Canyon Ferry Boating Corporation during the current fisca…

A: Cash Dividend -  Cash Dividend is the amount distributed by the company from the accumulated profit…

Q: Treasury Stock Inland Corporation issued 30,000 shares of $5 par value common stock at $15 per share…

A:

Q: H? Stock is credited dends is debited for $40, for $40,

A: Answer :Entry to declaration of a stock dividend Stock dividend (17000*12%*20) $40,800   Common…

Q: Skysong Company s leager 6% Preferred stock-$10 par value, outstanding 20,100 shares Common…

A: Preferred stock is a hybrid form of financing that combines some features of common stock and some…

Q: A company originally issued 18,000 shares of $8 par value common stock at $12 per share. The board…

A: DECLARATION OF DIVIDENDSDividend is the amount paid by the Corporation its shareholders in return…

Q: Nebraska Inc. issues 2,200 shares of common stock for $70,400. The stock has a stated value of $20…

A: Common stock is the kind of stock issued by the entity for raising funds from the market. The…

Q: Item 1: On January 1, 2024, Entity L had 40,000 shares of $1 par value common stock issued and…

A: Journal Entry - Journal entry is the recording of business transaction in books of account, this is…

Q: Goggle Corporation issued 5,000 stocks of its $1 par value common stocks as a stock dividend when…

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: A company had stock outstanding as follows during each of its first three years of operations: 2,500…

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

Q: 1. Prepare the journal entry to record Tamas Company's issuance of 5,100 shares of $100 par value,…

A: Every transaction for a firm is documented in journal entries. A economic transactions that has an…

Q: A Calculator On January 1, Sunshine Corporation had 38,000 shares of $12 par value common stock…

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: am.100.

A: 1. **Retained Earnings:** This account is debited with the value of the stock dividend declared,…

Q: 1. Prepare the journal entry to record Tamas Company's issuance of 6,900 shares of $100 par value,…

A: Dividends are paid in two types Stock dividends and Cash dividends. Stock dividend means a payment…

Q: 6. A corporation had 50,000 shares of $20 par value common stock outstanding on July 1. Later that…

A: Stock dividends are dividends paid to the shareholders in the form of shares i.e. instead of cash…

Q: Preparing Entries for Small Stock Dividends Landry Inc. has 20,000 shares of common stock, $1 par…

A: A stock dividend is a corporate action in which a company distributes additional shares of its own…

Q: The Golden Mushroom has two classes of stock authorized: 8%, $10 par preferred, and $1 par value…

A: Treasury stocks are repurchased shares of the company. These shares can be purchased by the firm…

Q: Prepare the appropriate general journal entries for the following treasury stock transactions of…

A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…

Q: Cash Dividends Bernard Corporation has the following shares outstanding: 8.000 shares of 350 par…

A: Dividend - Dividend is a amount declared by the company to the existing shareholders of the company.…

Q: For Feet's Sake has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common.…

A: Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders issued in…

Q: Question: Stock transactions for Careful Driving School, Inc: March 4 May 22 Sep. 22 Oct. 14 Issued…

A: The journal entries and the amounts, mentioned in the answer, are recorded in the accounts, such as…

Q: ross Company has 300,000 c he following stock transaction 0,000 shares for the treasury

A: Starting with the beginning shares of 300,000, we add the additional shares from the stock dividend…

Q: Rodriguez Corporation issues 16,000 shares of its common stock for $163,100 cash on February 20.…

A: Journal entries are the transactions which are reported by the business entity in the books of…

Q: How would I Debit and Credit each of these? Jan. 3 Issued 15,000 shares of $20 par common stock…

A: Journal entry: It is a systematic record of a financial transaction of a company recorded in…