Cash dividends on the $10 par value common stock of Harland Company were as follows:

•The 4th quarter cash dividend was declared on December 20,2014,to stockholders of record on December 31,2014.Payment of the 4th quarter dividend was made on January 9,2015.
•In addition,Harland declared a 5 percent stock dividend on its $10 par value common stock on December 1,2014,when there were 150,000 shares issued and outstanding and the market value of the common stock was $20 per share.The shares were issued on December 1,2014.
What was the effect on Harland's stockholders' equity accounts as a result of the 2014 dividend transactions?

Question

Cash dividends on the $10 par value common stock of Harland Company were as follows:

•The 4th quarter cash dividend was declared on December 20,2014,to stockholders of record on December 31,2014.Payment of the 4th quarter dividend was made on January 9,2015.
•In addition,Harland declared a 5 percent stock dividend on its $10 par value common stock on December 1,2014,when there were 150,000 shares issued and outstanding and the market value of the common stock was $20 per share.The shares were issued on December 1,2014.
What was the effect on Harland's stockholders' equity accounts as a result of the 2014 dividend transactions?

Quizplus · Accepted Answer

The Answer of Cash dividends on the $10 par value common stock of Harland Company were as follows:

•The 4th quarter cash dividend was declared on December 20,2014,to stockholders of record on December 31,2014.Payment of the 4th quarter dividend was made on January 9,2015.
•In addition,Harland declared a 5 percent stock dividend on its $10 par value common stock on December 1,2014,when there were 150,000 shares issued and outstanding and the market value of the common stock was $20 per share.The shares were issued on December 1,2014.
What was the effect on Harland's stockholders' equity accounts as a result of the 2014 dividend transactions?

Cash Dividends on the $10 Par Value Common Stock of Harland