Racette Corporation has 390,000 shares of $7 par-value common stock issued and outstanding. Record the following entries

Question:

Racette Corporation has 390,000 shares of $7 par-value common stock issued and outstanding. Record the following entries into the general journal for Racette:

201X

July 2 Declared a cash dividend of $0.60 per share.

Aug. 1 Paid the $0.60 cash dividend to the stockholders.

4 Declared a 3% stock dividend. The current market price is $13 per share.

Sept. 12 Issued the stock dividend declared on August 4.

Oct. 1 Declared a 10% stock dividend. The current market price is $22 per share.

Nov. 2 Issued the stock dividend on October 1.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...