Marigold Corporation has outstanding 385,000 shares of $10 par value common stoc

Question

Marigold Corporation has outstanding 385,000 shares of $10 par value common stock. The corporation declares a 10% stock dividend when the fair value of the stock is $70 per share.

Prepare the journal entries for Marigold Corporation for both the date of declaration and the date of distribution. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Declaration Date

Distribution Date

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Explanation / Answer

Journal Entries

date

Explanation

Debit

credit

1-

retained earnings

2695000

dividend payable

2695000

2-

Dividend payable

2695000

common stock

2695000

Journal Entries

date

Explanation

Debit

credit

1-

retained earnings

2695000

dividend payable

2695000

2-

Dividend payable

2695000

common stock

2695000

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