Problem

Accounting for a stock dividend [5-10 min]Return to the Yummy, Inc., data in Short Exercis...

Accounting for a stock dividend [5-10 min]

Return to the Yummy, Inc., data in Short Exercise Assume instead that the December 15, 2012 stock dividend was 45%.

Requirements

1. Journalize the stock dividend.


2. How many shares of common stock are outstanding after the dividend?

Accounting for a stock dividend [5-10 min]

Yummy, Inc., had 310,000 shares of $1 par common stock issued and outstanding as of December 1, 2012. The company is authorized to issue 1,400,000 commonshares. On December 15, 2012, Yummy declared and distributed a 5% stock dividend when the market value for Yummy’s common stock was $3.

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