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gregori [183]
3 years ago
15

A corporation declares and distributes a 20% stock dividend at a time when there are 10,000 shares outstanding (before the divid

end). The common stock has a par value of $1/share and a market value of $20/share. What will be the debit made to retained earnings to record this stock dividend?
Business
1 answer:
quester [9]3 years ago
8 0

Answer:

$40,000

Explanation:

Stock dividend is the payment of dividend to stockholder in the form of stock/shares of the company. Stock are issued at the market price and the value of the dividend is transferred from the retained earning to the add-in-capital accounts.

Dividend Value = 10,000 x 20% = 2,000 shares

Value is calculated using market value of the stock

Value of Dividend = 2,000 x $20 = $40,000

Par Value of Stocks = $1 x 2,000 = $2,000

Add-in-capital excess of par common stock = ($20-$1) x 2,000 = $38,000

Journal Entry will be as follow

Dr. Retained Earning                                   $40,000

Cr. Common stock                                       $2,000

Cr. Add-in-Capital excess of par common $38,000

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Which of the suggestions do NOT rely on the support of a parent or guardian?
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Answer:

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Explanation:

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What does it mean if your net assets increase
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A firm has redesigned its production process so that it now takes 10 hours for a unit to be made. Using the old process, it took
Citrus2011 [14]

Answer:

Reduction in work in progress = $7500

Explanation:

given data

time = 10 hours

time = 15 hours

worth  = $1,500

to find out

reduction in work in process value

solution

we find work in progress   by this formula

work in progress  = Flow rate  × Cycle Time     .......................1

so Initial work in progress is

Initial work in progress   = (1 per hour)  × 10 hours = 10

and Final work in progress is here

Final work in progress   = (1 per hour) × 15 hours = 15

so

Initial work in progress   value = 10  × 1500

Initial work in progress   value= $15000

and

Final work in progress    value =15  × 1500

Final work in progress    value = $22500

so

Reduction in work in progress = $22500 - $15000

Reduction in work in progress = $7500

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Primary

Explanation:

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