The shareholders’ equity of Core Technologies Company on June
30, 2020, included the following:
Common stock, $1 par; authorized, 8 million shares; issued and outstanding, 3 million shares |
$ | 3,000,000 | |
Paid-in capital—excess of par | 12,000,000 | ||
Retained earnings | 19,000,000 | ||
On April 1, 2021, 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
$34 on April 1, 2021, and $44 on June 1, 2021.
Required:
Complete the below table to calculate the stock dividend. Prepare
the journal entries to record the declaration and distribution of
the stock dividend.
rev: 07_13_2019_QC_CS-173076
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