Question

On October 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on...

On October 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 12,000, $3 par, common shares. The market price of the common stock is $32 on this date.


Required:

1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split. (If no entry is required for a transaction/event, select "No journal entry required" in the first

1.Record the stock dividend assuming a small (10%) stock dividend.

2.Record the stock dividend assuming a large (100%) stock dividend.

3.Record the stock dividend assuming a 2-for-1 stock split.

Business   Accounting   
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Answer #1
1
Date General Journal Debit Credit
October 01 Stock dividends 38400 =12000*10%*32
      Common stock 3600 =12000*10%*3
      Additional paid­ in capital 34800
2
Date General Journal Debit Credit
October 01 Stock dividends 36000 =12000*100%*3
      Common stock 36000
3
Date General Journal Debit Credit
October 01 No journal entry required
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