The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1 Common stock, $10 par $300,000.00 2 Additional paid-in capital on common stock 200,000.00 3 Retained earnings 200,000.00 4 $700,000.00 Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 per share Required: 1. Assuming the board of directors recommends a 6% stock dividend, prepare: a. the journal entry at the date of declaration b. the journal entry at the date of issuance c. shareholders’ equity after the issuance 2. Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1. Please only answer number 2 :)
The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1 Common stock, $10 par $300,000.00 2 Additional paid-in capital on common stock 200,000.00 3 Retained earnings 200,000.00 4 $700,000.00 Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 per share Required: 1. Assuming the board of directors recommends a 6% stock dividend, prepare: a. the journal entry at the date of declaration b. the journal entry at the date of issuance c. shareholders’ equity after the issuance 2. Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1. Please only answer number 2 :)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.1E
Related questions
Question
The shareholders’ equity of Raven Company is as shown:
|
RAVEN COMPANY
|
|
Partial Balance Sheet
|
|
1
|
Common stock, $10 par
|
$300,000.00
|
|
2
|
Additional paid-in capital on common stock
|
200,000.00
|
|
3
|
Retained earnings
|
200,000.00
|
|
4
|
|
$700,000.00
|
Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 per share
Required:
| 1. | Assuming the board of directors recommends a 6% stock dividend, prepare: |
| a. | the |
| b. | the journal entry at the date of issuance |
| c. | shareholders’ equity after the issuance |
| 2. | Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1. |
Please only answer number 2 :)
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