Question

BrightBright

​Schools, Inc. is authorized to issue​ 200,000 shares of

​$22

par common stock. The company issued

78 comma 00078,000

shares at

$ 6$6

per share. When the market price of common stock was

$ 8$8

per​ share,

BrightBright

declared and distributed a

1010​%

stock dividend.​ Later,

BrightBright

declared and paid a

$ 0.30$0.30

per share cash dividend.Read the requirements

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.

Requirement 1. Journalize the declaration and the distribution of the stock dividend.​ (Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

​First, journalize the declaration of the stock dividend.

Date

Accounts and Explanation

Debit

Credit

Now journalize the distribution of the stock dividend.

Date			Accounts and Explanation	Debit	Credit

Requirement 2. Journalize the declaration and payment of the cash dividend.​ (Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

Begin by journalizing the declaration of the cash dividend.

Date			Accounts and Explanation	Debit	Credit

Now journalize the payment of the cash dividend.

Date			Accounts and Explanation	Debit	Credit

Answer 1

Journal entries"
S.no.	Accounts title and explanation					Debit $	Credit $
a.	Retained earnings Account Dr. (7800*8)					62400
	Common Stock Distributable Account						46800
	Additional Paid in Capital-Common						15600
b.	Common Stock Distributable Account Dr.					46800
	Common Stock Capital						46800
c.	Dividend-Common Account Dr. (78000+7800)0.30					25740
	Dividend Payable Account						25740
d.	Dividend Payable Account Dr.					25740
	Cash account						25740