Stock Dividends

Kaufman Company currently has 200,000 shares of $1 par common stock outstanding. On March 15, a 10% stock dividend was declared to shareholders of record on April 2, distributable on April 14. Market value of the common stock was estimated at $8 per share.

Question Content Area

1. Prepare journal entries for the declaration and distribution of the 10% common stock dividend.

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ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	20-- Mar. 15	Cash DividendsCommon StockPaid-In Capital in Excess of Par-Common StockStock DividendsStock Dividends Distributable	blank	blank	- Select -	- Select -	1
2	blank	CashCommon StockStock DividendsStock Dividends DistributableStock Dividends Payable	blank	blank	- Select -	- Select -	2
3	blank	Common StockPaid-In Capital in Excess of Par-Common StockPreferred StockRetained EarningsStock Dividends	blank	blank	- Select -	- Select -	3
4	blank	blank	blank	blank	blank	blank	4
5	Apr. 14	CashCommon StockPaid-In Capital in Excess of Par-Common StockStock DividendsStock Dividends Distributable	blank	blank	- Select -	- Select -	5
6	blank	CashCommon StockPaid-In Capital in Excess of Par-Common StockStock Dividends DistributableStock Dividends Expense	blank	blank	- Select -	- Select -	6
7	blank	blank	blank	blank	blank	blank	7