Marin Corporation has outstanding 440,000 shares of $10 par value common stock.

Question

Marin Corporation has outstanding 440,000 shares of $10 par value common stock. The corporation declares a 10% stock dividend when the fair value of the stock is $69 per share. Prepare the journal entries for Marin 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 tities and enter 0 for the amounts Account Titles and Explanation Declaration Date Debit Credit Distribution Date

Explanation / Answer

Account title and explanation Debit Credit Declaration date Stock Dividend (440,000*10%*69) $ 3,036,000 Stock dividend distributable (440,000*10%*$10) $     440,000 Additional paid in capital   $ 2,596,000 Distribution date Stock dividend distributable $     440,000 Common stock $     440,000

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