Accounting and Financial Reporting II

On July 31, a corporation has the following financial data:

Common stock issued & outstanding 100,000 shares

Par value of common stock $10 per share

Market price of common stock $50 per share

On July 31, the corporation declares 10% stock dividend on common stock. The stock dividends are distributed on August 31.

Prepare any necessary journal entries on July 31.

Prepare any necessary journal entries on August 31.