Stock dividend is the return paid in shape of shares to the existing owners in any company. Many companies pay annual dividends in cash but some companies pay dividend by allotting their shareholder's additional equity share.
Assume a company announces a 25% stock dividend to its existing shareholders means that each shareholder will receive one new share for four already held. No additional consideration is required to be paid by shareholders as the stock dividend is paid out of equity and the share capital is increased with the same amount. The equity reserve is debited and share capital is credited. No changes take place in equity.
Data pertaining to the current position of Forte Company follow:
Part A In late 2017, the Nicklaus Corporation was formed
Badger Corporation declared a stock dividend to all shareholders of record on
Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts
On December 31, 2017, Berclair Inc. had 200 million
The balance sheet of Consolidated Paper, Inc., included the following
Listed below are the transactions that affected the shareholders’ equity of Branch
On December 31, 2017, Berclair Inc. had 200 million
Senior Life Co. is an HMO for businesses in the Portland
Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at
