Mulligan Golf Corporation has 600,000 common shares outstanding. The corporation declares a 7% stock dividend when the

Question:

Mulligan Golf has 600,000 common shares outstanding. The declares a 7% stock when the shares’ fair value is $30 per share (their carrying value is $18 per share). Prepare the journal entries for the company for both the date of declaration and the date of distribution.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...