Instructions Chart of Accounts Instructions Pro-Builders Corporation has 242,000
ID: 2542640 • Letter: I
Question
Instructions Chart of Accounts Instructions Pro-Builders Corporation has 242,000 shares of $45 par common stock outstanding. On September 2, Pro-Builders Corporation declared a 2% stock dividend to be issued November 30 to stockholders of record on October 3. The market price of the stock was $48 per share on September 2 Journalize the entries required on September 2, October 3, and November 30. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titlesExplanation / Answer
Stock Dividends = 242,000 shares x 2% x $48
Stock Dividends Distributable = 4,840 shares x $45
Paid In Capital In Excess Of Par-Common Stock = $4,840 shares x ($48 - $45)
Date Accounting title and explanation Debit credit September 2 Stock Dividends (242,000 * 2% * $48) 232320 Stock Dividends Distributable (242,000 * 2% * $45) 217800 Paid-In Capital in Excess of Par - Common stock 14520 October 3 No entry required Nov 30 Stock Dividends Distributable 217800 Common Stock 217800