The following dividends both pertain to Ehrlich Corporation. On October 10, the board of directors declared a 10% stock dividend to be distributed on October 31 to shareholders of record on October 25. Prior to the dividend, the company had 90,000 shares of $5 par common stock issued and outstanding with a market price of $17 per share. A. Prepare the journal entries for the declaration and distribution of the stock dividend. B. Show the new amount of shares outstanding after the stock dividend is issued. On November 15, the board declared a cash dividend of $3 per share to stockholders of record on November 30, to be paid on December 15. C. Prepare the journal entries for the declaration and payment of the cash dividend.
The following dividends both pertain to Ehrlich Corporation.
On October 10, the board of directors declared a 10% stock dividend to be distributed on
October 31 to shareholders of record on October 25. Prior to the dividend, the company
had 90,000 shares of $5 par common stock issued and outstanding with a market price of
$17 per share.
A. Prepare the
B. Show the new amount of shares outstanding after the stock dividend is issued.
On November 15, the board declared a cash dividend of $3 per share to stockholders of
record on November 30, to be paid on December 15.
C. Prepare the journal entries for the declaration and payment of the cash dividend.
Step by step
Solved in 4 steps
