Chart of Accounts General Journal Balance Sheet Instructions The shareholders\'
ID: 2554493 • Letter: C
Question
Chart of Accounts General Journal Balance Sheet Instructions The shareholders' equity of Raven Company is as shown: Raven Company Partial Balance Sheet 1 Common stock, $10 par 2 Additional Paid-in Capital on Common Stock $250,000.00 150,000.00 200,000.00 $600,000.00 Retained Earnings Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $30 per share Required 1 Assuming the board of directors recommends a 6% stock dividend, prepare a. the journal entry at the date of declaration b. the journal entry at the date of issuance Check My Work 1 more Check My work uses remaining 1 more Check My Work uses remaining All work saved Save and Exit Submit AssignmentExplanation / Answer
1. Declaration of 6% stock dividend on Dec.1 a. Declaration of stock dividend Date Account title Debit Credit Dec.1 Retained Earnings 45000 Stock dividend distributable 45000 b. Distribution of stock dividend Date Account title Debit Credit Dec.15 Stock dividend distributable 45000 Common Stock 15000 Additional paid-in-capital 30000 Raven Company Partial Balance Sheet Common stock, $10 par 265000 Additional paid-in-capital, common stock 180000 Retained earnings 155000 600000 2. Declaration of 40% stock dividend on Dec.1 a. Declaration of stock dividend Date Account title Debit Credit Dec.1 Retained Earnings 200000 Additional paid-in-capital - stock dividend 100000 Stock dividend distributable 300000 b. Distribution of stock dividend Date Account title Debit Credit Dec.15 Stock dividend distributable 300000 Common Stock 100000 Additional paid-in-capital 200000 Raven Company Partial Balance Sheet Common stock, $10 par 350000 Additional paid-in-capital, common stock 350000 Additional paid-in-capital, stock dividend -100000 600000