Help Entries for stock dividends Chart of Accounts Journal Instructions Olde Win

Question

Help

Entries for stock dividends Chart of Accounts Journal Instructions Olde Wine Corporation has 275,500 shares of S30 par common stock outstanding. On February 15, Olde Wine Corporation declared a 2% stock dividend to be issued May 2 to stockholders of record on March 27. The market price of the stock was $51 per share on February 15. Journalize the entries required on February 15, March 27, and May 2. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles

Explanation / Answer

Journal entry :

Date account and explanation debit credit Feb 15 Retained earnings (275500*2%*51) 281010 Common Stock dividend distributable 165300 Paid in capital in excess of par value 115710 (To record stock dividend declared) Mar 27 No entry May 2 Common Stock dividend distributable 165300 Common Stock 165300 (To record Stock dividend issued)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.