$1 par value common stock outstanding E emen a stributes a 5% stock a iden e mar
ID: 2432005 • Letter: #
Question
$1 par value common stock outstanding E emen a stributes a 5% stock a iden e market value of its stock s S15 ors Element water Sports has 13,000 shares o Read the requirements. w an are Requirement 1. Journalize Element's declaration of the stock dividend on August 15 and distribution on August 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by journalizing the declaration of the stock dividend on August 15. Date Accounts and Explanation Debit Credit Aug. 15 Now journalize the distribution of the stock dividend on August 31 Date Accounts and Explanation Debit Credit Aug. 31Explanation / Answer
Entries for Dividend Declaration and It’s distribution
Date
Particulars
Debit
Credit
Aug 15
Retained Earnings
(13,000 x 5% x $15)
$9,750
Common stock dividend distributable
(13,000 x 5% x $1)
$ 650
Paid in capital in excess of par value, common stock
(13,000 x 5% x $14)
$9,100
(Declared 5% stock dividend)
Aug 31
Common stock dividend distributable
$ 650
Common stock
$650
(Distributed common stock dividend declared on Aug 15)
Date
Particulars
Debit
Credit
Aug 15
Retained Earnings
(13,000 x 5% x $15)
$9,750
Common stock dividend distributable
(13,000 x 5% x $1)
$ 650
Paid in capital in excess of par value, common stock
(13,000 x 5% x $14)
$9,100
(Declared 5% stock dividend)
Aug 31
Common stock dividend distributable
$ 650
Common stock
$650
(Distributed common stock dividend declared on Aug 15)
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