To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stockdividend. The company has 800,000 shares authorized and 200,000 shares outstanding. The parvalue of the stock is $1 per share and the market value is $100 per share. Prepare the journal entryto record this large stock dividend.
To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stockdividend. The company has 800,000 shares authorized and 200,000 shares outstanding. The parvalue of the stock is $1 per share and the market value is $100 per share. Prepare the journal entryto record this large stock dividend.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock
dividend. The company has 800,000 shares authorized and 200,000 shares outstanding. The par
value of the stock is $1 per share and the market value is $100 per share. Prepare the journal entry
to record this large stock dividend.
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