Declaration and distribution of the stock dividend

Assignment Help Accounting Basics

Reference no: EM13129290

Douglas McDonald Company's balance sheet included the following shareholders' equity accounts at De- cember 31, 2005:
Paid-in capital ($ in millions)

Common stock, 900 million shares at $1 par: $ 900
Paid-in capital-excess of par 15,800
Retained earnings 14,888

Total shareholders' equity $31,588

On March 16, 2006, a 4% common stock dividend was declared and distributed. The market value of the common stock was $21 per share. Fractional share rights represented 2 million equivalent whole shares. Cash was paid in place of the fractional share rights.

Required:

Prepare the appropriate entries for the declaration and distribution of the stock dividend.

Reference no: EM13129290

Questions Cloud

Find probability of guessing exactly three answers correctly : Find the probability of guessing (a) exactly three answers correctly, (b) at least three answers correctly, and (c) less than three answers correctly.

Important information about differential equation problem : Check that N(t) = t/(1 +ct) is a solution of the differential equation dN/dt = N^2/t^2. Treat c as an unspecified constant.

Crystal field theory - high spin and low-spin complexes : Write a structural formula for two different isomers of [Co(H2O)2(en)2]Cl2. Indicate the oxidation state of the Co in each case.

Question regarding riemann integrable : Are these functions Reimann Integrable? I am just learning this topic, so my description may not be accurate. A function is Reimann Integrable if it's Upper Darboux Sums and Lower Darboux suns are equal.

Declaration and distribution of the stock dividend : Prepare the appropriate entries for the declaration and distribution of the stock dividend.

What is the quantum of light called : Which of the intermolecular forces is the most important contributor to the high surface tension shown by water and What is the quantum of light called?

Probability that exactly zero vehicles need warranty service : Jones Nissan in Sumter, South Carolina, sold 15 Nissans yesterday. What is the probability that exactly 0 vehicles require warranty service?

Reimann integrable problem : If f is a reimann integrable function on [a,b], and if [c,d] is a subset of [a,b], prove that f is reimann integrable on [c,d] hint: if P is any partition of [c,d], P can be extended to a partition P* of [a,b] with ||P*||

What are some of common parts of each of these report : identify what are some of common parts of each of these annual reports. Also, go into a little detail and give your opinion as to what is different between these two reports.

User Account

All Pages