E13-28

Journalize the declaration and distribution of the stock Prepare the stockholders' equity section of the balance sheet as of May 31, 2015. Assume Retained Earnings are $124,000 on April 30, 2016, before the stock dividend, and the only change made to Retained Earnings before preparing the balance sheet was closing the Stock Dividends account. Journalizing cash and stock dividends Pottery Schools, Inc. is authorized to issue 200,000 shares of $2 par common stock. The company issued 76,000 shares at $4 per share. When the market price of common stock was $6 per share, Pottery declared and distributed a 10% stock dividend. Later, Pottery declared and paid a $0.10 per share cash dividend. Requirements Journalize the declaration and the distribution of the stock dividend. Journalize the declaration and the payment of the cash dividend. Reporting stockholders' equity after a stock split Tour Golf Club Corp. had the following stockholders' equity at December 31, 2015