Howeverinastockdividendadditionalsharesusually

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Unformatted text preview: ders are not entitled to receive one; thus, no liability exists until the dividend is actually declared. E12–14 a. Stock Dividend (–SE) Capital, Common Stock (+SE) Declared and issued 2% stock dividend. * $11,200 b. = (10,000 shares issued – 2,000 shares in treasury) 2% $70 per share No journal entry is necessary. However, the company should prepare a memorandum entry stating that the par value has decreased from $6 to $4 per share and that there are now 15,000 shares issued and 12,000 shares outstanding. c. Stock Dividend (–SE) Capital, Common Stock (+SE) Declared and issued 10% stock dividend. * $64,000 d. 11,200* Common Stock (+SE) 960 Additional Paid­In 10,240 64,000* Common Stock (+SE) 4,800 Additional Paid­In 59,200 = (10,000 shares issued – 2,000 shares in treasury) 10% $80 No journal entry is necessary. However, the company should prepare a memorandum entry stating that the par value has decreased from $6 to $3 per share and that there are now 20,000 shares issued and 16,000 shares out...
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