Entries for Stock Dividends Paris Corporation has 30,000 shares of $70 par commo

Question

Entries for Stock Dividends

Paris Corporation has 30,000 shares of $70 par common stock outstanding. On June 8, Paris Corporation declared a 2% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $81 per share on June 8.

Journalize the entries required on June 8, July 13, and August 12. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank.

Jun. 8 Jul. 13 Aug. 12

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit June 8 Stock dividend (30000*2%*81) 48600 Common Stock dividend distributable 42000 Paid in capital in excess of par value-Common Stock 6600 (To record Stock dividend declared) Jul 13 No entry Aug 12 Common Stock dividend distributable 42000 Common Stock 42000 (To record Stock distributed)

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