TB Problem Qu. 13-230 (Algo) Small stock dividend

Following is the stockholders' equity section as of June 30.

Common stock$20 par value, 150,000 shares authorized, 61,000 shares issued and outstanding	$ 1,220,000
Paid-in capital in excess of par value, common stock	426,000
Retained earnings	553,000
Total stockholders equity	$ 2,199,000

On July 1, the directors declare a 2% stock dividend distributable on July 31 to the July 15 stockholders of record. The stocks market value is $36 per share on July 1 before the stock dividend.

1. Record both the dividend declaration and its distribution.
2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)

1.Record both the dividend declaration and its distribution.

No	Date	General Journal	Debit	Credit
1	July 01
2	July 31

• Required 2 Stockholders Equity Section of the Balance Sheet
• July 31

Total Stockholders Equity	$