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Question - Mt. Everst Company has $1,000,000 shares of 10%, $20 Par Value Preferred Stock outstanding. On December 1, the Board of Directors declares a 4% Stock Dividend to be issued to the shareholders of record on December 15 and distributed on December 30. The market price of the stock on December 1 was $25 per share.
Required -
1. Calculate the amount the Company would Debit to Stock Dividends on December 15th?
2. Calculate the amount the Company would Credit to Additional Paid in Capital Preferred Stock on December 15?
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