Please make it organinzed in a table Thanks Stock Dividends SE11. On February 15
ID: 2790602 • Letter: P
Question
Please make it organinzed in a table Thanks
Stock Dividends SE11. On February 15, Mite Corporation's board of directors declared a 2 percent stock dividend applicable to the outstanding shares of its $10 par value common stock, of which 400,000 shares are authorized, 260,000 are issued, and 40,000 are held in the treasury. The stock dividend was distributed on March 15 to stockholders of record on March 1. On February 15, the market value of the common stock was $15 per share. On March 30, the board of directors declared a $0.50 per share cash dividend. No other stock transactions have occurred. Prepare journal entries to record, as necessary, the transactions of February 15, March 1, March 15, and March 30. entries to of February 15, March 1,Explanation / Answer
In the books of Mite Corporation :
Date Acccount Titles Debit Credit $ $ February 15 Retained Earnings ( 260,000 - 40,000) x 2% x $ 15 66,000 Common Stock Dividend Distributable ( 260,000 x 40,000) x 2% x $ 10 44,000 Paid-in Capital in Excess of Par: Common Stock 22,000 March 15 Common Stock Dividend Distributable 44,000 Common Stock 44,000 March 30 Retained Earnings 112,200 Dividends Payable : Common Stock ( 220,000 + 4,400) x $ 0.50 112,200