Alpine Energy Corporation has 1,500,000 shares of $40 par common stock outstandi
ID: 2577892 • Letter: A
Question
Alpine Energy Corporation has 1,500,000 shares of $40 par common stock outstanding. On August 2, Alpine Energy declared a 4% stock dividend to be issued October 8 to stockholders of record on September 15. The market price of the stock was $70 per share on August 2.
Journalize the entries required on August 2, September 15, and October 8.
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.
Explanation / Answer
Date
General Description
Debit
Credit
Aug-02
Stock Dividends
4200000
(1500000*70*4%)
Stock dividend distributable(1500000*4%*40)
2400000
Paid in Capital in excess of par- Common stock
1800000
(bal fig)
Sep-15
No entry required
Oct-08
Stock Dividend distributable
2400000
Common stock
2400000
Date
General Description
Debit
Credit
Aug-02
Stock Dividends
4200000
(1500000*70*4%)
Stock dividend distributable(1500000*4%*40)
2400000
Paid in Capital in excess of par- Common stock
1800000
(bal fig)
Sep-15
No entry required
Oct-08
Stock Dividend distributable
2400000
Common stock
2400000
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