A Corporation Had Stockholders' Equity on January 1 as Follows

question 58

Essay

A corporation had stockholders' equity on January 1 as follows: Common Stock, $1 par value, 1,500,000 shares authorized, 600,000 shares issued; Paid-in Capital in Excess of Par Value, Common Stock, $1,100,000; Retained Earnings, $2,300,000. Prepare journal entries to record the following transactions:
Feb. 15 The board of directors declared a 10% stock dividend to stockholders of record on
March 1, to be issued on April 15. The stock was trading at $12 per share prior to the dividend.
Mar. 31 Sold 100,000 shares of common stock for $13 per share. Apr. 15 Issued the stock dividend.

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Definitions:

Additional Work

Tasks or assignments added beyond the original scope or requirements, often resulting in extra costs or extended timelines.

Marginal Cost

The rise in overall expenses due to the production of an additional unit.

Marginal Benefit

The extra pleasure or benefit derived from consuming an additional unit of a product or service.

Corporate Job

Employment within a company or organization that usually involves office-based work, specialized roles, and hierarchical positions.