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
|Paid-in capital—excess of par||8,000,000|
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.
|Number of share outstanding||2000000|
|Stock dividend rate||10%|
|Stock dividend shares||200000|
|Market price per share||32|
|Stock dividend value||6400000|
|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|
|(to record stock dividend distribution)|
Note : there is no table given so i have done with assumed table.
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