A). On October 1, 2021, Helmsmith Corporation declared and issued a 10% common stock dividend. Before this date, Helmsmith had 80,000 shares of $1 par common stock outstanding. The market price of Helmsmith Corporation’s common stock on the date of declaration was $10 per share.

Required

Show Helmsmith’s journal entries to record the common stock dividend on:

1) The date of declaration
2) The date of record
3) The date of distribution/payment

B). Despot declared a property dividend to give shares of Orange Computer to its common stockholders. The following information is available about Despot’s investment in Orange shares:

a). Despot paid $7 million for its original investment in Orange
b). On the date of declaration, the Orange shares have a fair market value of $16 million.
c). On the date of distribution/payment, the Orange shares have a market value of $14 million

Required
Show Despot’s journal entries to record the property dividend on:

1) The date of declaration
2) The date of record
3) The date of distribution/payment