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3 years ago

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on January 31,2009,Village Bank had 500000 shares of $2 par value common stock outstanding. On that date the company declared a

14% stock dividend when the market price of the stock was $37 per share. The immediate effect of this dividend upon Village Bank was?

1 answer:

slavikrds [6]3 years ago

3 0

A reduction in retained earnings of $2,950,000.

$37(500,000 x .14) = &2,590,000

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65% = 100 % - Cost of Goods sold

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Cost of Goods sold = 35%

Now calculate the value of cost of goods sold using following formula

Cost of goods sold percentage = Cost of good sold / Sales Revenue

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premium on bonds 1 million

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premium 39

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Explanation:

<u>recording the bonds:</u>

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premium 40

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To calculate the interest, we will calcualte the interest per payment:

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