Use the Following Information to Answer Questions Prague Corp

question 97

Short Answer

Use the following information to answer questions Prague Corp.is authorized to issue 400,000 no par value common shares.Subscribers agree to purchase shares at $15 per share with a 30% down payment.
-Lisbon Corp.has 1,000,000 no par common shares authorized, of which 800,000 shares are outstanding.The average carrying value of the shares is $5 per share.When the market value was $10 per share, Lisbon declared a 10% stock dividend.What entry, if any, should Lisbon make to record this dividend declaration?

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Definitions:

Circular-Flow Diagram

A visual model showing the interactions between households and firms in an economy, illustrating the flows of goods and services and factors of production in markets.

Factors Of Production

The resources including labor, land, capital, and entrepreneurship, that are used in the production of goods and services.

Laboratory Experiments

Controlled experiments typically conducted in a lab setting to study behavior or test hypotheses in economics and other sciences.

Markets For Factors

Markets where factors of production such as labor, capital, and land are bought and sold.