Brief Exercise 15-13 Kingbird Corporation has outstanding 405,000 shares of $10

Question

Brief Exercise 15-13

Kingbird Corporation has outstanding 405,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $70 per share.

Prepare the journal entries for Kingbird Corporation for both the date of declaration and the date of distribution. (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.)

Account Titles and Explanation

Debit

Credit

Declaration Date

Distribution Date

Account Titles and Explanation

Debit

Credit

Declaration Date

Distribution Date

Explanation / Answer

stocks outstanding 405,000 stock dividend percentage 5% stock dividend. 20250 shares Account titles and Explanation Debit Credit Declaration Date Retained earnings (20,250*70) 1417500 Common stock dividend distributable(20,250*10) 202500 Paid in capital in excess of par -common stock 1215000 Distribution Date Common stock dividend distributable 202,500 common stock. 202,500

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