Answer:
Uh, of course I'm not at work! I brutally broke my back. Ouch.
Answer:
The accounting entries is as follows:
Debit Retained Earnings($35 by 30,000 shares) $1,050,000
Credit: Common Shares Account at Par Value($1 by 30,000 shares) $30,000
Credit Share Premium Account for Additional Paid in Capital ($34 by 30,000) = $1,020,000
Explanation:
A stock dividend is payment to shareholders by the company in the form of additional shares rather than dividend payment. This is common where the company is short of liquid funds to effect payment of dividends to its shareholders. They are usually issues in the form of fractions of existing holdings. Stock dividend increases the overall share holdings of the shareholder.
For Stock Dividend, the accounting entry is to transfer from the Retained Earnings to the Share Account and Share Premium or Additional Capital account.
The Share account is credited with the par value of the additional shares issued while the difference between the par value and the market value is credited to the Share Premium account. The full amount of the stock dividend is likewise debited to the Retained Earnings account.
The fed can supply funds to the markets in the case of a financial panic because they are the lender of last resort.
What is markets?
The term “market” refers to the exchange of commodities and services. A market mainly involves the buyer and seller. Types of markets, such as perfect competition, monopoly markets, monopolistic competition, and oligopoly markets.
Financial panic of the condition as supply fund markets to fed as last option was of lender of last resort. The term lender of last resort define as loan of those banks are faced by the financial difficulties.
As a result, the condition of the financial panic are fund supply in the market there is last option is lender of last resort.
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