Entries for Stock Dividends Madrid Corporation has 35,000 shares of $40 par comm

Question

Entries for Stock Dividends Madrid Corporation has 35,000 shares of $40 par common stock outstanding. On June 8, Madrid Corporation declared a 4% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $64 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. un. 8 Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Par-Common Stock 33,800 13 stock Dividends 6,000 No E Aug 12 Common Stock Paid-In Capital in Excess of Par-Common Stock

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Jun 8 Retained earnings a/c 89600 Common Stock dividend distributable a/c 56000 Paid in capital in excess of par-common stock 33600 (To record stock dividend declared) Jul 13 No entry Aug 12 Common Stock dividend distributable 56000 Common stock a/c 56000 (To record stock dividend issued)

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