Question

Olde Wine Corporation has 213,500 shares of $30 par common stock outstanding. On February 15, Olde Wine Corporation declared a 1% stock dividend to be issued May 2 to stockholders of record on March 27. The market price of the stock was $49 per share on February 15.

Journalize the entries required on February 15, March 27, and May 2. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS

Olde Wine Corporation

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
151	Prepaid Insurance
181	Land
193	Equipment
194	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
236	Stock Dividends Distributable
241	Salaries Payable
261	Mortgage Note Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
315	Treasury Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
351	Cash Dividends
352	Stock Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Selling Expenses
534	Rent Expense
535	Insurance Expense
536	Office Supplies Expense
537	Organizational Expenses
562	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest Expense

Answer 1

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	Working
1	15-Feb	Stock Dividends	352	$104,615		213500 shares x 1% x $ 49
2		Stock Dividends Distributable	236		$64,050	213500 shares x 1% x $ 30 par
3		Paid-In Capital in Excess of Par-Common Stock	312		$40,565	213500 shares x 1% x $ 19
		(to record declaration of dividends)
4	02-May	Stock Dividends Distributable	236	$64,050
5		Common Stock	311		$64,050
		(to record distribution)

• Note: No journal entry is required on Mar 27, the record date.