Entries for Stock Dividends Paris Corporation has 23,000 shares of $70 par commo

Question

Entries for Stock Dividends
Paris Corporation has 23,000 shares of $70 par common stock outstanding. On June 8,Paris Corporation declared a 3% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $81 per share on June 8.
Journalize the entries required on June 8, July 13,and August 12. For a compound transaction, if an amount does not require an entry, leave it blank. If no entry required, select "No Entry Required " and leave the amount boxes blank.

Explanation / Answer

Journal Entries Date Account Title and explanation Debit Credit June , 08 Retained Earning ( 23,000 Shares X 3% ) = 690 Shares X $ 81 $                  55,890        To Stock Dividend Payable $                     55,890 (To Record the stock dividend payable) July , 13 Record date : This is a date which is taken for shareholders holding the share as on date and distribute in future Holding the shares as on july 13 is eligible for stock dividend " No Entry Required) August , 12 Stock dividend Payble $                  55,890       To Share Capital $                     48,300        To Addittional paid in capital - Common Stock (to record the issue of stock dividend)

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