Question

On January 1, 2019, Cullumber Company had $1,000,000 of common stock outstanding that was issued at par. It also had retained earnings of $740,000. The company issued 35,000 shares of common stock at par on July 1 and earned net income of $390,000 for the year.
Required:
Journalize the declaration of a 14% stock dividend on December 10, 2020, for the following independent assumptions.
a. Par value is $10, and market price is $18.
b. Par value is $5, and market price is $20.

Answer 1

Answer:

a. Par value is $10, and market price is $19. b. Par value is $5, and market price is $20.

Explanation: