Stock Dividend Required: 1. On April 15, 2013, when its stock was selling for $1

Question

Stock Dividend

Required:

1. On April 15, 2013, when its stock was selling for $18 per share, Cohen Enterprises issued a small stock dividend. After making the journal entry to recognize the stock dividend, Cohen's total capital stock increased by $270,000. In percentage terms, what was the size of the stock dividend?
  %

2. Ignoring the small stock dividend discussed in Requirement 1, assume that on June 1, 2013, when its stock was selling for $22 per share, Cohen issued a large stock dividend. After making the journal entry to recognize the stock dividend, Cohen's retained earnings decreased by $75,000. In percentage terms, what was the size of the stock dividend?
  %

Explanation / Answer

Stock Dividend Required: 1. On April 15, 2013, when its stock was selling for $1

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