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fenix001 [56]
3 years ago
9

Green Day Corporation has outstanding 500,000 shares of $10 par value common stock. The corporation declares a 70% stock dividen

d when the fair value of the stock is $45 per share. Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution.
Business
1 answer:
adell [148]3 years ago
5 0

Date of Declaration:

Dr: Retained Earnings 22,850,000

Cr: Common Stock Dividend Distributable 350,000

Cr: Paid-in Capital in Excess of Par-Common 22,500,000

500,000*45 = 22,500,000

22,500,000+350,000=22,850,000

Date of Distribution:

(70%*500,000) = 350,000

Dr: Common Stock Dividend Distributable 350,000

Cr: Common Stock 350,000

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Answer is the  threat of substitute products or services.

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<em></em>

Equation 2: Dr. Lum spends 3 hours per week preparing for Hilltop classes, and 4 hours for Serra classes, subject to a maximum of 18 hours per week.

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