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    Computing Shares Issued in a Stock Dividend

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    Please help with the following problem.

    On January 1, 2010, Metco, Inc., had 264,000 shares of $2 par value common stock issued and outstanding. On March 15, 2010, Metco, Inc., purchased for its treasury 3,100 shares of its common stock at a price of $39.00 per share. On August 10, 2010, 640 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash dividends of $.70 per share during the second quarter and again during the fourth quarter, payable on June 30, 2010, and December 31, 2010, respectively. A 2.00% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year.

    Calculate the number of shares of stock issued in the stock dividend.

    Stock dividend shares: __________

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    Solution Preview

    Shares outstanding at January 1, 2010 264,000
    Shares purchased on March 15, 2010 ( ...

    Solution Summary

    The following posting helps with an accounting problem. This solution illustrates how to compute the number of shares issues when a stock dividend is distributed.