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amswer as quick as possible thanks Earl Corporation has outstanding 120,000 shares of $5 par value common stock. The board of directors declared a 15

amswer as quick as possible thanks
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Earl Corporation has outstanding 120,000 shares of $5 par value common stock. The board of directors declared a 15 stock dividend on the common stock The market price of the stock on the date the dividend is declared is $25 per share. The journal entry to record the declaration of the stock dividend will include a debit to Stock Dividends for $450,000 credit to Common Stock for $90,000 debit to Stock Dividends Distributable for $90,000 debit to Paid-in Capital in Excess of Par - Common Stock for $360,000 On January 1, $450,000 of bonds with a carrying value of $450,000 are converted into 100,000 shares of $1 par value common stock. The entry to record the conversion includes a debit to Bonds Payable for $100,000 debit to Common Stock for $100,000 credit to Paid-in-Capital in Excess of Par for $350,000 credit to Bonds Payable for $450,000

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