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Black Raptor Inc. has retained earnings of $500,000 and total stockholders equity of $2,000,000. It has 80,000 shares of $10
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Answer #1

Total value of stock dividend = 80000*10%* = $200,000

Journal entry for this transaction:

Accounts Debit Credit
Retained Earnings $200000
Common stock $200000

Retained earnings will decrease by $200,000 and total paid in capital will increase by $200,000.

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