Question
1) Carpenter Schools, Inc. is authorized to issue 500,000 shares of $2 par common stock. The company issued 106,000 shares at $6 per share. When
1) Carpenter Schools, Inc. is authorized to issue 500,000 shares of $2 par common stock. The company issued 106,000 shares at $6 per share. When the market price of common stock was $10 per share, Carpenter declared and distributed a 10% stock dividend. Later, Carpenter declared and paid a $0.10 per share cash dividend.
Prepare the journal entries to record these transactions. Explanations are not required.
Answer:
| Accounts and Explanation | Debit | Credit |
| Stock Dividends
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| Common Stock Dividend Distributable
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| Paid-In Capital in Excess of ParCommon |
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| Common Stock Dividend Distributable
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| Common Stock$ |
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| Cash Dividends
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| Dividends Payable |
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| Dividends Payable |
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| Cash |
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