During December 2019, BRC Declared and Issued a 1 for 5

question 171

Essay

During December 2019, BRC declared and issued a 1 for 5 stock dividend on its 100,000 outstanding common shares.The per share amounts were: original average issue price $16; current market price (end 2019)$13; and the average market price for 1999, $15.Give the required journal entry to record the simultaneous declaration and issuance of the stock dividend.

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Definitions:

Worker

An individual who performs tasks or services for compensation; an employee.

Variable Cost

Costs that change in proportion to the activity or volume of output in production, such as raw materials and direct labor costs.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.

Marginal Cost

The amount of money spent to manufacture one additional unit of a product or service.