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Preferred shares cash dividends have been declared and paid. Common share dividends have been declared,...

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Accounting

Preferred shares cash dividends have been declared and paid. Common share dividends have been declared, but not paid. In preparation for the public issuance of shares in five years, HEMIs management declared a 10% common stock dividend on November 1, 2019. Common shares for the stock dividends wereissued to the existing common shareholders on December 30, 2019. However, the transaction has not been recorded in HEMIs accounting records. HEMI is authorized to issue 50,000,000. HEMI issued 12,000,000 common shares on January 2, 2019 (i.e., these were the shares outstanding prior to the stock dividend). HEMIs common shares are valued at $21per share. The Accountant wants you to calculate the dollar amount to be assigned to the common sharesissued as stock dividends. Provide an adjusting journal entry to record the stock dividend.

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