On October 15,2016,a 5% Stock Dividend Was Declared and Distributed

question 54

Essay

On October 15,2016,a 5% stock dividend was declared and distributed.The market 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 value of the common shares was $5.
Required:
Prepare any necessary journal entries to record the above events.

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Definitions:

Computerised Networking

The use of computer systems and digital technologies to establish connections and facilitate communication between individuals or organizations.

Integration

The process of combining or coordinating separate parts or entities into a unified whole, often used in business strategies or system functionalities.

Differentiation

The process or strategy of making a product, service, or brand stand out as unique from competitors, often through design, features, or quality.

Organic Structures

An organizational form that is flat, uses low levels of formalization, and fosters the sharing of knowledge and power across levels, promoting flexibility and quick response to changes.