Common shares, unlimited number authorized, 450,000 shares issued 2,030,000
Total Contributed Capital $2,730,000
Retained Earnings 2,100,000
Total Shareholders Equity $4,830,000
On May 2, 2020, ABC declared a 5% common stock dividend distributable on July 15 to shareholders of record on June 20. The fair market value of the common shares on May 2, 2020 was $32.50.
Instructions:
Prepare the necessary journal entries to record the common stock dividend
Answer & Explanation
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