90.2K

Verified Solution

Link Copied!

Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends theoughout Year 6 , the current year. It is aiso declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consuitant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two dasses of stock: common stock and cumulative preferred stock, The company declared a 2% common stock dividend on December 1 , and would like you to compute the following pieces of missing information. The market value of the common shares is $25 on December 1 , and is $30 on the actual distribution date of the stock, December 31 . Fill in the missing information in the foliowing table, using the information given and your work on the other paneis. Af "before"items are before the stock dividend Was deciared, All "after" iems are after the stock dividend was declared and closing entries were recorded at the end of the year, feribach T Clied My Won Review the detritions of poid-in capital, retahed earnings, and stockholders' equity. Aso look at how the issuance of atock divisends changes these amounts Pesthars Creck My Wun Partialy correct

Answer & Explanation Solved by verified expert

See Answer