Check my work 6 On June 13, the board of directors of Siewert Inc. declared a 5%

Question

Check my work 6 On June 13, the board of directors of Siewert Inc. declared a 5% stock dividend on its 140 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $34 on June 13. Complete the below table to calculate the stock dividend. Prepare the journal entry to record the stock dividend 2 points Complete this question by entering your answers in the tabs below eBook Print References ock Dividend Journal Complete the below table to calculate the stock dividend. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Stock Dividend Number of outstanding shares Stock dividend percentage (%) Number of shares to be issued Value of stock dividend

Explanation / Answer

a) Stock Dividend Number of outstanding shares 140 Million Stock dividend percentage(%) 5% Number of shares to be issued 7 Million Market Value per share $          34 Value of stock dividend $        238 Million b) Date General Journal Debit Credit June 13 Retained Earning $        238 Common Stock $ 7 Additional Paid in capital $        231 (To record stock dividend) Working: Total Stock dividend 7 Million x $ 1 = $ 7 Million Less Common Stock 7 Million x $          33 = $        231 Million Additional Paid up Capital

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