Respuesta :
Reynolds corp. has 100,000 shares of $1 par value common stock issued and outstanding. reynolds declares a 20% stock dividend when the fair value of the stock is $8 per share. the debit to stock is $160,000.
Outstanding Shares * Stock Dividend Rate * Market Price Per Share = 100000*20%*8 Stock Dividend = 160000. Units of equity ownership in a firm are called shares. For some businesses, shares are a form of financial property that guarantee an equitable dividend distribution of any declared residual earnings. A company that does not pay dividends does not distribute its income to its shareholders. A stock is a type of asset that signifies the holder has a certain percentage of ownership in the issuing company. Stocks are typically traded on stock exchanges. Common and preferred stocks are the two main categories of stock. The total value of all of a stock's shares, or market capitalization, is another way that stocks are classed. Large-cap stocks are those of the largest corporations, while mid-cap and small-cap stocks are those of gradually smaller companies.
Learn more about stock here :
https://brainly.com/question/28663581
#SPJ4
