Question

Wallendo Corporation issued 5,000 shares of its $1 par value common stock as a stock dividend when the shares were selling for $10 per share. At the time of the dividend, Wallendo had 100,000 shares of common stock $5,000. $100,000. $50,000. $105,000. outstanding. These shares were originally issued for $5 per share. The entry to record the stock dividend includes a debit to Retained Earnings for:

Answer 1

The answer id given below

Step-by-step explanation:

Retained Earnings 5,000*10 Dr.$25,000

Capital 5,000*1 Cr.$5,000 Paid in Capital 5000*(10-1) Cr.$45,000

The retained earnings will be debited with market price of shares given as dividend.