ACCOUNTING 1-On January 1, 2019, Frontier Corporation had $1,000,000
Question # 00624984
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Updated on: 12/06/2017 08:39 AM Due on: 12/06/2017
On January 1, 2019, Frontier Corporation had $1,000,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,000. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year. Instructions Journalize the declaration of a 15% stock dividend on December 10, 2019, for the following independent assumptions.
(a) Par value is $10, and market price is $18.
(b) Par value is $5, and market price is $20.
Compare effects of a stock dividend and a stock split.
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Rating:
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Solution: ACCOUNTING 1-On January 1, 2019, Frontier Corporation had $1,000,000