Aquamanu Developments is authorized to issue 500,000 shares. To date, the company has 169,100 shares issued and 131,400 outstanding. Aquamanu is considering declaring a dividend to its common shareholders. Management is recommending the board of directors to consider the following options at the next meeting scheduled for March 1:

1.		The boards of directors should approve a motion directing the company to pay a dividend of $0.40 per share on May 1 to shareholders of record on April 15 or
2.		The board should approve a motion directing the company to declare a 10% stock dividend. Aquamanu would distribute one common share for every 10 common shares currently held. The companys common shares are currently selling for $53 per share.

(a)

Partially correct answer icon

Your answer is partially correct.

Prepare any necessary journal entries for the cash dividend on March 1, April 15, and May 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Choose a transaction date. March 1April 15May 1	Enter an account title for the journal entry on the date of declaration.	Enter a debit amount.	Enter a credit amount.
	Enter an account title for the journal entry on the date of declaration.	Enter a debit amount.	Enter a credit amount.
	(Date of declaration)
Choose a transaction date. March 1April 15May 1	Enter an account title for the journal entry on the date of record.	Enter a debit amount.	Enter a credit amount.
	Enter an account title for the journal entry on the date of record.	Enter a debit amount.	Enter a credit amount.
	(Date of record)
Choose a transaction date. March 1April 15May 1	Enter an account title for the journal entry on the date of payment.	Enter a debit amount.	Enter a credit amount.
	Enter an account title for the journal entry on the date of payment.	Enter a debit amount.	Enter a credit amount.
	(Date of payment)

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List of Accounts

Attempts: 2 of 2 used

(b)

Prepare the entry to record the stock dividend, assuming that the dividend is declared on March 1 and is distributed on May 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Choose a transaction date. March 1April 15May 1	Enter an account title for the journal entry on the date of declaration.	Enter a debit amount.	Enter a credit amount.
	Enter an account title for the journal entry on the date of declaration.	Enter a debit amount.	Enter a credit amount.
	(Date of declaration)
Choose a transaction date. March 1April 15May 1	Enter an account title for the journal entry on the date of record.	Enter a debit amount.	Enter a credit amount.
	Enter an account title for the journal entry on the date of record.	Enter a debit amount.	Enter a credit amount.
	(Date of record)
Choose a transaction date. March 1April 15May 1	Enter an account title for the journal entry on the date of payment.	Enter a debit amount.	Enter a credit amount.
	Enter an account title for the journal entry on the date of payment.	Enter a debit amount.	Enter a credit amount.
	(Date of payment)