Briet Exercise 11-12 Your answer is partially correct. Try again. Pronghurn Corp

Question

Briet Exercise 11-12 Your answer is partially correct. Try again. Pronghurn Corp has 270,000 shares of $10 par value commuri s outstanding. It declares a 13% stuck dividend un December 1 when he market price pe' share is $15. The d iden shares are 1 sued on December 31. Prepare the entries for the decaraton and distribution of the stock dlvidend. (Record journal entrles In the order presented in the problem. 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.) Date Account Trtles and Explanation ebit Credit

Explanation / Answer

Journal entry :

Date Accounts & explanation debit credit Dec 1 Stock Dividend (270000*13%*15) 526500 Common Stock Dividend distributable 351000 Paid in capital in excess of par value-Common Stock 175500 (To record Stock Dividend declared) Dec 31 Common Stock Dividend distributable 351000 Common Stock 351000 (To record Stock dividend distributed)

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