Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 16, Problem 1MC
Cash dividends on the $10 par value common stock of Garrett Company were as follows:
The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020.
In addition, Garrett declared a 5% stock dividend on its $10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was $20 per share. The shares were issued on December 24, 2019.
What was the effect on Garrett’s shareholders’ equity accounts as a result of the preceding transactions?
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Chapter 16 Solutions
Intermediate Accounting: Reporting And Analysis
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