On January 1, 2005, Abdella Corporation had $1,150,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,000. The company issued 60,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year.
Instructions
Journalize the declaration of a 15% stock dividend on December 10, 2005, for the following independent assumptions.
1. Par value is $10, and market value is $18.
2. Par value is $5, and market value is $20
I understand the entry names:
Retained Earnings
stock payable distributable
paid in capital in excess of par
but I don't understand how you get the values for those entries.
any ideas?
2007-02-10
07:28:13
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1 answers
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asked by
midnitestar_ladyd
1