Sealand Company has 90,000 common shares outstanding. Because it wants to retain its cash for other purposes, the companydecided to issue stock dividends to its shareholders. The market price of each Sealand Company share was $22.Prepare the journal entries if the company decides to declare and issue a 9% stock dividend. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accounttitles and enter O for the amounts.)Account and explanationDebitCreditWhen declared:When issued:eTextbook and MediaList of AccountsPrenare the iournal entry if instead of declaring the stock dividend the company decides to split its shares two-for-one. (Creditin ontncic reauired, select "No Entry" List of AccountsPrepare the journal entry if instead of declaring the stock dividend the company decides to split its shares two-for-one. (Creditaccount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter O for the amounts.)Account and explanationDebitCrediteTextbook and MediaList of AccountsAPRétv14

Number of shares outstanding = 90,000 Current market value of 1 common stock = $22 Stock dividend…

Sealand Company has 90,000 common shares outstanding. Because it wants to retain its cash for other purposes, the company decided to issue stock dividends to its shareholders. The market price of each Sealand Company share was $22. Prepare the journal entries if the company decides to declare and issue a 9% stock dividend. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account and explanation Debit Credit When declared: When issued:

Sealand Company has 90,000 common shares outstanding. Because it wants to retain its cash for other purposes, the company decided to issue stock dividends to its shareholders. The market price of each Sealand Company share was $22. Prepare the journal entries if the company decides to declare and issue a 9% stock dividend. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account and explanation Debit Credit When declared: When issued:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9P

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