Centervile Bancshares has 36,000 shares of $7 par common stock outstandg Suppose

ID: 2565505 • Letter: C

Question

Centervile Bancshares has 36,000 shares of $7 par common stock outstandg Suppose Cantenle declares and diabtes a 1% stock didend when the matt value of its stock is $15 per share. Joumalize Centerville's declaration and distribution of the stock dividend on May 11. An explanation is not required 2. what was te overal' edect of the stock dividend on Centerville's al assets? On totalities? 0n ltal stockholder egdy? explanations from any journal entries ) of the stock dividend on May 11. An explanation is not required (Recard dobils frt, then credls Exclode Journal Entry Debit May 11 Choose trom any ist or enter any number in the input fields and then click Check Answer Clear All to search o beats 6 46 8 6 4 2

Explanation / Answer

Date

Accounts

Debit

Credit

May. 11

Retained earnings (36,000 shares*1%*$15)

$ 5,400.00

Common stock (36,000 shares*1%*$7)

$ 2,520.00

Paid in capital in excess of par - Common

$ 2,880.00

Effect on Total assets = Nil

Effect on Total liabilities = Nil

Effect on Total Stockholders' equity = Nil

The stockholders' shall decrease by $5,400 as debit to Retained earnings and increase by $5,400 as credit to Common stock and Paid in capital in excess of par. The net effect shall be $0.