Stock Dividend
Not what you're looking for?
The stockholders' equity section of Milroy Corporation as of December 31, 2003, was as follows:
Common stock, par value $2; authorized 20,000 shares;
issued and outstanding 10,000 shares $20,000
Paid-in capital in excess of par 30,000
Retained earnings $90,000
Total $140,000
On March 1, 2004, the board of directors declared a 10% stock dividend, and accordingly 1,000 additional shares were issued. On March 1, 2004, the fair market value of the stock was $6 per share. For the two months ended February 28, 2004, Milroy sustained a net loss of $10,000.
What amount should Milroy report as retained earnings as of March 1, 2004?
Purchase this Solution
Solution Summary
The solution explains the impact on retained earnings of a stock dividend.
Solution Preview
When the stock dividend is issued, retained earnings would reduce ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Operations Management
This quiz tests a student's knowledge about Operations Management
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Basics of corporate finance
These questions will test you on your knowledge of finance.