Accounting and Financial Reporting II On July 31, a corporation has the followin
ID: 2559013 • Letter: A
Question
Accounting and Financial Reporting II
On July 31, a corporation has the following financial data:
Common stock issued & outstanding 100,000 shares
Par value of common stock $10 per share
Market price of common stock $50 per share
On July 31, the corporation declares 10% stock dividend on common stock. The stock dividends are distributed on August 31.
Prepare any necessary journal entries on July 31.
Prepare any necessary journal entries on August 31.
Explanation / Answer
31-Jul Retained earnings 500000 =100000*10%*50 Common stock dividend distributable 100000 =100000*10%*10 Paid in capital in excess of par-Common Stock 400000 31-Aug Common stock dividend distributable 100000 Common Stock 100000