On October 15, 2018, a 5% Stock Dividend Was Declared

question 31

Essay

On October 15, 2018, a 5% stock dividend was declared and distributed. The fair value of the common stock on this date was $32 per share. Fractional share rights represented 100,000 shares. Cash was paid in lieu of issuing fractional share rights. On the date of declaration and payment, the company had 10 million shares of common stock outstanding. The par of the common shares was $5.
Required:
Prepare any necessary journal entries to record the above events.

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Definitions:

Botswana

A landlocked country located in Southern Africa, known for its stable democracy, natural beauty, and rich diamond mines.

Opportunity Costs

The cost of foregone alternatives; the benefits one misses out on by choosing one option over another.

Nations

Politically organized territories with defined borders, a common government, and a shared cultural or historical identity.

Technologies

Encompasses the collection of techniques, skills, methods, and processes used in the production of goods or services or in the accomplishment of objectives, such as scientific investigation.