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The shareholders\' equity of Core Technologies Company on June 30, 2017, include

ID: 2545860 • Letter: T

Question

The shareholders' equity of Core Technologies Company on June 30, 2017, included the following Common stock, $1 par, authorized, 8 million shares $ 3,000,000 12,000,000 4,000,000 issued and outstanding, 3 mililion shares Paid-in capital excess of par Retained earnings on April 1, 2018, the board of directors of Core Tecn loges dedared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies common stock was $30 on April 1, 2018, and $40 on June 1, 2018 Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend Complete this question by entering your answers in the tabs below. General Stock Dividend Journal Prepare the journal entries to record the declaration and distribution of the stock dividend. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the declaration of the stock dividend. Note: Enter debits before credits. Date General Journal Debit Credit April 01, 2018 General Journal

Explanation / Answer

     Date

                               General journal

      Debit

     Credit

April 1 , 2018

Retained Earnings (3000,000*$30)

$9,000,000

            Stock Dividend Distributable(300,000*$1)

     $300,000

            Paid in capital in excess of par(300,000*$29)

   $8,700,000

June 1 , 2018

stock dividend distributable

$300,000

              common stock

  $300,000

     Date

                               General journal

      Debit

     Credit

April 1 , 2018

Retained Earnings (3000,000*$30)

$9,000,000

            Stock Dividend Distributable(300,000*$1)

     $300,000

            Paid in capital in excess of par(300,000*$29)

   $8,700,000

June 1 , 2018

stock dividend distributable

$300,000

              common stock

  $300,000

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