Stock Dividends

Stock Dividends Crystal Corporation has the following information regarding its common stock: $10 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares outstanding. On August 22, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $28 per share. Required: 1. Prepare the journal entries to record declaration and payment of this stock dividend. If an amount box does not require an entry, leave it blank. Aug. 22 Dividends Declared 548,520 Common Stock 235,080 X Additional Paid-In Capital-Common Stock 313,440 x Feedback Check My Work 1. Small stock dividends are capitalized using the stock's market value, while large stock dividends are capitalized at the stock's par value. 2. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend. If an amount box does not require an entry, leave it blank. Aug. 22 Dividends Declared 470,160 Common Stock 470,160