Results 1 to 1 of 1

Math Help - Accounting Help.. Did part of it but stuck... Stock Dividends and Stock Splits?

  1. #1
    Newbie
    Joined
    Dec 2010
    Posts
    1

    Question Accounting Help.. Did part of it but stuck... Stock Dividends and Stock Splits?

    A company would like to issue a 5% stock dividend this year. The company has 15,000 shares of common stock and no preferred stock outstanding. The stock has a par value of $2 and an initial issue value of $12 per share. Currently the stock is trading at $20 per share. I have to record a journal entry for the 5% stock dividend.

    So far I have this:
    DEBIT - Retained Earnings - 300,000
    CREDIT - Common Stock - 1500
    CREDIT - Additional Paid in Capital-Common Stock - 298500

    Which is not right.. I got turned around somehow and the instructors description isn't helping.. so can someone kindly help point me in the right direction? Thanks!

    EDIT - Figured it out..

    I forgot to take the # of shares by the % and then multiply that by the current market price per share.
    Last edited by vgates81; December 5th 2010 at 05:04 PM. Reason: Figured it out...
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Rate of return on stock stock index
    Posted in the Business Math Forum
    Replies: 0
    Last Post: July 14th 2010, 10:45 AM
  2. Stock and Dividends
    Posted in the Business Math Forum
    Replies: 0
    Last Post: March 9th 2009, 11:10 AM
  3. stock problem
    Posted in the Business Math Forum
    Replies: 1
    Last Post: February 22nd 2009, 03:02 PM
  4. Common Stock
    Posted in the Business Math Forum
    Replies: 0
    Last Post: November 9th 2008, 06:30 AM
  5. stock problem
    Posted in the Calculus Forum
    Replies: 5
    Last Post: September 3rd 2008, 10:23 AM

Search Tags


/mathhelpforum @mathhelpforum