Question

The shareholders’ equity of Core Technologies Company on June 30, 2017, included the following: Common stock,...

The shareholders’ equity of Core Technologies Company on June 30, 2017, included the following:

Common stock, $1 par; authorized, 5 million shares;
issued and outstanding, 2 million shares		 $ 2,000,000
Paid-in capital—excess of par 8,000,000
Retained earnings 14,000,000

On April 1, 2018, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $32 on April 1, 2018, and $42 on June 1, 2018.

Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.

Business   Accounting   
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Answer #1

Table

Number of share outstanding 2000000
Stock dividend rate 10%
Stock dividend shares 200000
Market price per share 32
Stock dividend value 6400000

Journal entry

date account and explanation debit credit
Apr 1 Retained earnings 6400000
    Common Stock dividend distributable 200000
     Paid in capital in excess of par value-Common Stock 6200000
(To record stock dividend declared)
June 1 Common Stock dividend distributable 200000
   Common Stock 200000
(to record stock dividend distribution)

Note : there is no table given so i have done with assumed table.

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