The stockholders' equity of Howell Company at July 31, 2014 is presented below: On August 1, 2014, the board of directors of Howell declared a 10% stock dividend on common stock, to be distributed on September 15th. The market price of Howell's common stock was $70 on August 1, 2014, and $76 on September 15, 2014. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

Question

The stockholders' equity of Howell Company at July 31, 2014 is presented below:  On August 1, 2014, the board of directors of Howell declared a 10% stock dividend on common stock, to be distributed on September 15th. The market price of Howell's common stock was $70 on August 1, 2014, and $76 on September 15, 2014. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

Quizplus · Accepted Answer

The Answer of The stockholders' equity of Howell Company at July 31, 2014 is presented below:  On August 1, 2014, the board of directors of Howell declared a 10% stock dividend on common stock, to be distributed on September 15th. The market price of Howell's common stock was $70 on August 1, 2014, and $76 on September 15, 2014. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

The Stockholders' Equity of Howell Company at July 31, 2014