Question

Nelly, Inc. had 320,000 shares of 32 per value common stock wed and standing of December 15, 2018. The company is authored to be 100.000. On December 18, 2018 yos the market value for Noly's common stock was 17 per share. The stock was wed on Dec. 30 Read the rements Requirement 1. Joumate the declaration and distribution of the stock dividend. (Record debitis first, then credits Select the explanation on the last line of the journal entry table) Start by oumaring the decision of the vided Date Accounts and Explanation Dec. 15 1. Jom the decision and won of the wind 2. How many of common lockwendig tartheid Now you the won of the dividend Date Account and Explanation Cred De Pri Done Deco Requirement. How many shares of common sending her the dividend? There we shares of common stocking the vidend Choose from any store any number in the mids and then content

Answer 1

Small Stock dividend,which is less than 20%-25%
Large Stock dividends,which is greater than 20%-25%.
	In this case it s large stock dividend ,so it is recorded at their par value.
	Common Shares outstanding	320000
	Par Value	$               2.00
	Market Price	$             17.00
	Stock dividends	40%
Nelly Inc.
Date	General,Journal	Debit	Credit
15-Dec	Retained Earnings(320000*40%)*$2	$ 2,56,000.00
	Common Stock dividends distributable		$ 2,56,000.00
	(Amount of declaration of Dividends)
30-Dec	Common Stock Dividends distributable	$ 2,56,000.00
	Common Stock		$ 2,56,000.00
	(Amount of Dividends Distributed)
	Common Shares outstanding after dividends=(320000+320000*40%)	448000
	There are 448000 common shares outstanding after stock dividends