The following dividends both pertain to Ehrlich Corporation. On October 10, the board of directors declared a 10% stock dividend to be distributed on October 31 to shareholders of record on October 25. Prior to the dividend, the company had 90,000 shares of $5 par common stock issued and outstanding with a market price of $17 per share. A. Prepare the journal entries for the declaration and distribution of the stock dividend. B. Show the new amount of shares outstanding after the stock dividend is issued. On November 15, the board declared a cash dividend of $3 per share to stockholders of record on November 30, to be paid on December 15. C. Prepare the journal entries for the declaration and payment of the cash dividend.
The following dividends both pertain to Ehrlich Corporation. On October 10, the board of directors declared a 10% stock dividend to be distributed on October 31 to shareholders of record on October 25. Prior to the dividend, the company had 90,000 shares of $5 par common stock issued and outstanding with a market price of $17 per share. A. Prepare the journal entries for the declaration and distribution of the stock dividend. B. Show the new amount of shares outstanding after the stock dividend is issued. On November 15, the board declared a cash dividend of $3 per share to stockholders of record on November 30, to be paid on December 15. C. Prepare the journal entries for the declaration and payment of the cash dividend.
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 12RE: Given the following year-end information, compute Greenwood Corporations basic and diluted earnings...
Related questions
Question
The following dividends both pertain to Ehrlich Corporation.
On October 10, the board of directors declared a 10% stock dividend to be distributed on
October 31 to shareholders of record on October 25. Prior to the dividend, the company
had 90,000 shares of $5 par common stock issued and outstanding with a market price of
$17 per share.
A. Prepare the
B. Show the new amount of shares outstanding after the stock dividend is issued.
On November 15, the board declared a cash dividend of $3 per share to stockholders of
record on November 30, to be paid on December 15.
C. Prepare the journal entries for the declaration and payment of the cash dividend.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning