Question
Low Corporation has 50,000 shares of $30 par value common stock outstanding and retained earnings of $1,125,000. The company declares a 100 percent stock dividend.
Low Corporation has 50,000 shares of $30 par value common stock outstanding and retained earnings of $1,125,000. The company declares a 100 percent stock dividend. The market price at the declaration date is $30 per share.
a. Prepare the journal entries for (1) the declaration of the dividend and (2) the issuance of the dividend.
| General Journal | |||
|---|---|---|---|
| Ref. | Description | Debit | Credit |
| (1) | AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends
| Answer
| Answer
|
| AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends
| Answer
| Answer
| |
| Declared 100% stock dividend. | |||
| (2) | AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends
| Answer
| Answer
|
| AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends
| Answer
| Answer
| |
| Issued stock for 100% stock dividend. | |||
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Data Analytics Using Microsoft Excel With Accounting And Finance Datasets Version 2.0
Authors: Joseph M. Manzo
1st Edition
1453395210, 9781453395219
