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Question

e v G VG search TexYG VGVE Search Te × Search Te × Search Te × Problem 1, × C ezto.mheducation.com/hm.tpx 8. On September 15, 2016, the sotte Company board of drectors declared a 8% stock dividend on common shares. The shares are to be disibuted on October 10, 2016, to shareholders of record on October 1 2016. The market price per share on the date of declaration was $23.0 while the market price on the date of distribution was $25.0. The common stock has a par value of $5 per share and there were 2,000,000 shares outstanding prior to the deciaration of the stock dividend Prepare any necessary journal entries to record the above transactions. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet Record declaration of common stock dividend Note: Enter debits before credits General Journal 15, 2016 Record entry Clear entry View general journal esc

Explanation / Answer

stock dividend = 2,000,000*8% 160000 Date Accounting titles & Explanations Debit Credit 9/15/2016 retained earnings ( 160,000*23) 3680000 common stock div distributable 800000 paid in capital in excess of par-CS 2880000 1-Oct no entry 10/11/2016 common stock dividend distributable 800,000 Common Stock. 800,000

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