I would I find the numbers I need to use to plug in? What are the formualas to s

Question

I would I find the numbers I need to use to plug in? What are the formualas to solve?

Cash and Stock Dividends Mandrich Corporation has 25,000 shares of $10 par value common stock outstanding. The company has $450,000 of retained earnings. At year-end, the company declares a cash dividend of $2.10 per share and a five percent stock dividend. The market price of the stock at the declaration date is $35 per share. Four weeks later, the company pays the dividends. a. Prepare the journal entry for the declaration of the cash dividend. b. Prepare the journal entry for the declaration of the stock dividend. C.Prepare the journal entry for the payment of the cash dividend. d. Prepare the journal entry for the payment of the stock dividend

Explanation / Answer

b Stock dividends 43750 =25000*5%*35       Stock dividend distributable 12500 =25000*5%*10       Paid in capital in excess of par value 31250 c Dividends payable 52500         Cash 52500 d Stock dividend distributable 12500        Common stock 12500

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---