Please answer with detailed calculations with Journal Entries for declaration an

Question

Please answer with detailed calculations with Journal Entries for declaration and distribution of the stock dividend.

The shareholders' equity of Core Technologies Company on June 30. 2015. included the following: Common stock. $1 par: authorized. 9 million shares: issued and outstanding. million shares Paid-in capital-excess of par Retained earnings On April 1 2016. the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1 The market price of Core Technologies' common stock was $40 on April 1. 2016. and $50 on June 1. 2016. Complete the below table to calculate the stock dividend.

Explanation / Answer

Stock Dividend Number of Outstanding Shares 4000000 Stock Dividend Percentage 10% Number of Shares to be issued 400000 4000000*10% Value of Stock Dividend 16000000 400000*40 Journal Retained Earnings 16000000 Common Stock Dividend Distributable 400000 Paid n Capital in excess of par 15600000

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