SOLUTION : A | |||||||||||||||||
CALCULATION OF VALUE OF STOCK DIVIDEND | |||||||||||||||||
Number of Shares outstanding = | 26500 | Shares | |||||||||||||||
Stock Dividend = 4% of 26,500 Shares = | 1,060 | Shares | |||||||||||||||
Market price per shares = | $ 26.00 | Per shares | |||||||||||||||
Value of Stock Dividend = 1,060 Shares X $ 26 = | $ 27,560 | ||||||||||||||||
Anwer = | $ 27,560 | ||||||||||||||||
SOLUTION : B | |||||||||||||||||
Assets | = | Liabilities | + | STOCKHOLDER'S EQUITY | REVENUE | - | Expenses | = | Net income | Statement of Cash Flow | |||||||
Cash | = | + | Common Stock | + | PIC in Excess | + | Retained Earnings | ||||||||||
0 | = | + | $ 7,420 | + | $ 20,140 | + | $ -27,560 | 0 | - | 0 | = | 0 | 0 | 0 | |||
(1,060 Shares X $ 7) | (1,060 Shares X $ 19 ) | (1,060 Shares X $ 26 ) | |||||||||||||||
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