SICO Co. has 8,000 shares issued and outstanding. The per-share par value is $1.5; book value $40 and market value is $52. 8% stock dividend is declared. Instruction: Prepare the journal entries related to: 1- Date of declaration. 2- Date of payment.

SICO Co. has 8,000 shares issued and outstanding. The per-share par value is $1.5; book value $40 and market value is $52. 8% stock dividend is declared. Instruction: Prepare the journal entries related to: 1- Date of declaration. 2- Date of payment.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 6EB: Spring Company is authorized to issue 500,000 shares of $2 par value common stock. In its first...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

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Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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