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Bramble Corporation has 54,000 shares of $12 par value common stock outstanding. It declares a 15%...

Bramble Corporation has 54,000 shares of $12 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $16. The dividend shares are issued on December 31.

Prepare the entries for the declaration and issuance of the stock dividend.

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Answer #1
Journal entries
Date GENERAL JOURNAL DEBIT ($) CREDIT ($)
December 1 Stock Dividends (54,000 × 15% × $16)        129,600.00
Common Stock Dividends Distributable (54,000 × 15% × $12)          97,200.00
Paid-in Capital in Excess of Par          32,400.00
(To record the declaration of stock dividend)
December 31 Common Stock Dividends Distributable          97,200.00
       Common Stock          97,200.00
(To record the issuance of the stock dividend)
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