Snols Corporation has 30,000 shares of its $1 par value common stock outstanding

Question

Snols Corporation has 30,000 shares of its $1 par value common stock outstanding

july 17 Declared a 10% stock dividend on common stock to be distributed on August 10 to stockholders
of record on july 31. market value of the stock was $5 per share on this date.
july 31 date of record
sept 10 distributed the stock dividend declared on july 17
sept 1 declared a $.50 per share cash dividend on common stock to be paid on septembe
16 to stockholders of record on september 10.

I can't figure out dividends and dividends payable entries.

Explanation / Answer

7/17 DR Common Stock Distributable (3,000*5)= 15,000 CR Dividends Payable 15,000 9/10 DR Dividends Payable 15,000 CR Common Stock 3,000 CR Paid in capital in excess of par 12,000 9/1 DR Dividends 16,500 (33,000*.50) CR Dividends Payable 16,500

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