Exercise 12-13 Journal Entries: Stock Dividends Panza Corporation has 60,000 sha
ID: 2531922 • Letter: E
Question
Exercise 12-13
Journal Entries: Stock Dividends
Panza Corporation has 60,000 shares of its $1 par value common stock outstanding.
Prepare journal entries to record the above transactions as they relate to the company's common stock:
If no entry is required, select "No entry required" and leave the amount boxes blank.
For a compound transaction, if an amount box does not require an entry, leave it blank.
July 17
July 31
Aug. 10
Sept. 1
July 17 Declared a 10 percent stock dividend on common stock to be distributed on August 10 to stockholders of record on July 31. Market value of the stock was $5 per share on this date. 31 Date of record. Aug. 10 Distributed the stock dividend declared on July 17. Sept. 1 Declared a $0.50 per share cash dividend on common stock to be paid on September 16 to stockholders of record on September 10.
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit July 17 Stock dividend (60000*10%*5) 30000 Common Stock dividend distributable 6000 Paid in capital in excess of par value-Common Stock 24000 (To record stock dividend declared) July 31 No entry Aug 10 Common Stock dividend distributable 6000 Common Stock 6000 (TO record stock distributed) Sep 1 Cash dividend (60000+6000)*.50 33000 Dividend payable 33000 (To record dividend declared)Related Questions
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