Stock Dividend and Stock Splits
Not what you're looking for?
PharmGen, a pharmaeutical company, was founded two years ago. Like most pharmaceutical companies. PharmaGen did not make any profits inits first two years of operations since the company spent heavily on research & development to create new drugs. However, in order to continue to attract investors, the company would like to issue a 5% stock dividend this year. PharmGen currently has 15,000 shares of common stock, and no preferred stock outstanding. The stock, which has a par value of $2.00, was initally issued at $12 per share. Currently, the stock is trading at $20 per share. What journal entry must PharmGen use to record this 5% stock dividend?
Purchase this Solution
Solution Summary
The solution provides journal entry to record 5% stock dividend for PharmGen.
Solution Preview
Share to be issued in stock dividend = 15000*5% = 750 ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.