On October 1, thc board of directors of Colorado Outhtters, Inc., doclares a sto

Question

On October 1, thc board of directors of Colorado Outhtters, Inc., doclares a stock dividend on its 25,000, $16 par, common shares. The market price of the common stock is $45 on this date Required: 1.2 & 3 Record the necessary o mal entries assuming a smal 10% stock dividend a large 100% stock dividend and a 2 for 1 stock spit lf no entry is required for a transaction/event, select "No ournal entry r quired in the first account field. Vew tranactkn Ist 1 Record the stock dividend assuming a small (10%) stock dividend 2 Record the stock dividend assuming a large (100%) stock dividend. 3 Record the stock dividend assuning a 2-for-1 stock split Credit Note : = journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

Journal Entries No Account titles & explanations Debit Credit 1) Retained earnings (2500*45 112500 Common stock div distributable 40000 paid in capital in excess of par 72500 (25000shares *10 %= 2500 shares) 2) Retained earnings (25000*16) 400000 Common stock div distribtutable 400000 3) No Entry

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.