On January 1, 2014, Wilkens Corporation had $1,200,000 of common stock outstanding that was issued at par and retained earnings of $750,000. The company issued 30,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year.

Journalize the declaration of a 15% stock dividend on December 10, 2014, for the following two independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a)

Par value is $10 and market price is $15.

(b)Par value is $5 and market price is $8.

 

No. Account Titles and Explanation (a) Retained Earnings Common Stock capital (b) Retained Earnings Common Stock capital Debit 378,000 420,000 Credit 210,000 168,000 105,000 315,000. No. Account Titles and Explanation (a) Retained Earnings Common Stock capital (b) Retained Earnings Common Stock capital Debit 378,000 420,000 Credit 210,000 168,000 105,000 315,000.