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Green Corp. declares a 25% stock dividend to its shareholders on 2/10. On that date, the company had 800,000 shares issued, 700,000 of which were
Green Corp. declares a 25% stock dividend to its shareholders on 2/10. On that date, the company had 800,000 shares issued, 700,000 of which were outstanding (100,000 were held in treasury). Green Corp. common stock has a par value of $1 and a fair market value of $88 Green Corp. distributed the stock the dividend to its shareholders on 2/28. On 3/15 Green Corp. declares a 3 for 1 stock split. What journal entry will Green Corp. record on 2/28, when the stock dividend is distributed? Dr. Stock Dividend Distributable $700,000 Cr. Common Stock $700,000 Dr. Stock Dividend Distributable $800,000 Cr. Common Stock $800,000 Dr. Stock Dividend Distributable $175,000 Cr. Common Stock $175,000 Dr. Stock Dividend Distributable $175,000 Cr. Cash $175,000
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