The shareholders\' equity of Core Technologies Company on June 30, 2015, include

Question

The shareholders' equity of Core Technologies Company on June 30, 2015, included the following: Common stock, $1 par; authorized, 8 million shares; issued and outstanding, 3 million shares Paid-in capital-excess of par Retained earnings $3,000,000 12,000,000 14,000,000 On April 1, 2016, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies' common stock was $30 on April 1, 2016, and $40 on June 1, 2016. Required Complete the below table to calculate the stock dividend Stock Dividend Number of outstanding shares Stock dividend percentage Number of shares to be issued Value of stock dividend

Explanation / Answer

Calculation of stock dividend Journal entry to record declaration and distribution of stock dividend Stock Dividend Date General Journal Debit Credit Number of outstanding shares 3000000 April 01,2016 Retained Earnings $9,000,000 Stock Dividend Percentage 10% Stock Dividend Distributable $9,000,000 Number of shares to be issued 300000 (recording of declaration of 10% stock dividend) Market price per share on April 1,2016 $30 Value of Stock Dividend $9,000,000 Date General Journal Debit Credit June 01,2016 Stock Dividend Distributable $9,000,000 Common stock $300,000 Paid in capital - excess of par $8,700,000 (recording of distribution of 10% stock dividend)

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