On February 4, Osterheld Corporation's stockholders' equity section appears as follows:
On February 4, Osterheld Corporation declares and distributes a 10% stock dividend when the market value of the stock is $5.
Required:
Prepare the journal entry for the stock dividend.
Show the balances in the stockholders' equity accounts after the stock dividend has been distributed.

Question

On February 4, Osterheld Corporation's stockholders' equity section appears as follows:
  On February 4, Osterheld Corporation declares and distributes a 10% stock dividend when the market value of the stock is $5.
Required:
Prepare the journal entry for the stock dividend.
Show the balances in the stockholders' equity accounts after the stock dividend has been distributed.

Quizplus · Accepted Answer

The Answer of On February 4, Osterheld Corporation's stockholders' equity section appears as follows:
  On February 4, Osterheld Corporation declares and distributes a 10% stock dividend when the market value of the stock is $5.
Required:
Prepare the journal entry for the stock dividend.
Show the balances in the stockholders' equity accounts after the stock dividend has been distributed.

On February 4, Osterheld Corporation's Stockholders' Equity Section Appears as Follows