Reference no: EM131778393
Problem - Equity transactions
Corporation has the following capital structure at the beginning of the year:
Common stock, 10$ par value,
60,000 shares authorized,
40,000 shares issued and outstanding 40,000
Paid-in capital in excess of par 110,000
Instructions - Prepare the entries for the two transactions below.
(1) A total cash dividend of $90,000 was declared and payable to stockholders of record.
(2) A 10% common stock dividend was declared. The market value of the common stock is $18 a share.
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