Knowledge Check

Sheffield Inc. declares a $10\%$ stock dividend on its $8,800$ shares of $$2$ par value common stock. The current fair market value of its stock is $$10$ per share. Record the entry on the declaration date. $($Credilt account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Common Stock Dividends Distributable

Paid$-$In Capital in Excess of Par

$($To record declaration of $10\%$ stock dividend$)$