value: 5.00 points Company Z has 2.05 million shares of common stock authorized

Question

value: 5.00 points Company Z has 2.05 million shares of common stock authorized with a par value of $1 and a market price of $51. There are 1.025 million outstanding shares and 0.25625 million shares held in treasury stock a. Prepare the journal entry if the company declares and distributes a 10% stock dividend. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars and not in millions.) View transaction list Journal entry worksheet Record the declaration and distribution of the 10% stock dividend. Note: Enter debits before credits Transaction General Journal Debit Credit Retained Earnings Common Stock Additional Paid-in Capital Record entry Clear entry View general journal

Explanation / Answer

a. Entry to record 10% stock dividend Account Title Debit Credit Retained earnings 3920625 Common stock 76875 Additional paid in capital 3843750 Working: Authorized shares 1025000 Treasury shares 256250 Outstanding shares 768750 Number of shares for 10% stock diviend 76875 Market value of share 51 Value of 10% stock dividend 3920625 b. Effect of 10% stock dividend Retained earnings -3920625 Common stock 76875 Additional paid in capital 3843750 Total 0 c. Entry to record 100% stock dividend Account Title Debit Credit Retained earnings 39206250 Common stock 768750 Additional paid in capital 38437500 Working: Number of shares for 100% stock diviend 768750 Market value of share 51 Value of 10% stock dividend 39206250 b. Effect of 100% stock dividend Retained earnings -39206250 Common stock 768750 Additional paid in capital 38437500 Total 0

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.