On June 13, the board of directors of Siewert Inc. declared a 6% stock dividend

Question

On June 13, the board of directors of Siewert Inc. declared a 6% stock dividend on its 150 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $28 on June 13.

Complete the below table to calculate the stock dividend. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Prepare the journal entry to record the stock dividend. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

On June 13, the board of directors of Siewert Inc. declared a 6% stock dividend on its 150 million, $1 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $28 on June 13.

Explanation / Answer

Stock dividend is paid as a percentage of the stock price Stock Dividend = 150000000*28*6% 252000000 Stock Dividend will eb $ 252000000 Journal entry Stock Dividend Dr 252000000 To Common Stock 252000000

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