Charlie Inc. had the following balances in its shareholders' equity at the beginning of the current year: During the year the following transactions took place:
1. Issued 7,000 shares at $20 per share.
2. Declared a 10% stock dividend, market price $21 per share.
3. Paid the stock dividend.
4. Declared a 4 to 1 stock split.
Instructions
a) Prepare the journal entries to record the transactions.
b) Determine the number of shares outstanding.

Question

Charlie Inc. had the following balances in its shareholders' equity at the beginning of the current year:  During the year the following transactions took place:
1. Issued 7,000 shares at $20 per share.
2. Declared a 10% stock dividend, market price $21 per share.
3. Paid the stock dividend.
4. Declared a 4 to 1 stock split.
Instructions
a) Prepare the journal entries to record the transactions.
b) Determine the number of shares outstanding.

Quizplus · Accepted Answer

The Answer of Charlie Inc. had the following balances in its shareholders' equity at the beginning of the current year:  During the year the following transactions took place:
1. Issued 7,000 shares at $20 per share.
2. Declared a 10% stock dividend, market price $21 per share.
3. Paid the stock dividend.
4. Declared a 4 to 1 stock split.
Instructions
a) Prepare the journal entries to record the transactions.
b) Determine the number of shares outstanding.