Business, 17.08.2019 18:10, mercedesamatap21hx0

On january 1, year 2, zook company had 26,000 shares of $1 par common stock outstanding. during october, year 2, the company’s board of directors declared and distributed a 1% common stock dividend when the market value of its common stock was $56 per share. in recording this transaction, what amount will be debited to retained earnings in the journal entry to record the stock dividend?

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answered: sophiaa23

The $14,560 amount will be debited to Retained earnings in the journal entry to record the stock dividend.

Explanation:

For computing the amount, first we have to compute the stock dividend which is shown below:

Stock dividend = Number of shares × rate of the stock dividend

= 26,000 × 1%

= 260 shares

Since in the question, it is given that the par value is $1 per share whereas the market value is $56 per share so the market value of shares should be recorded instead of par value

So, the amount will be = Stock dividend shares × market value per share

= 260 shares × $56 per share

= $14,560

Hence, the $14,560 amount will be debited to Retained earnings in the journal entry to record the stock dividend.

answered: Guest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answered: Guest

answer; ///blank(1); rate-buster; blank(2) systematic soldiering;

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On january 1, year 2, zook company had 26,000 shares of $1 par common stock outstanding. during octo...