Tusk Company has 60,000 shares of its $1 par value common stock outstanding.
Prepare journal entries for the following transactions as they relate to the company’s common stock:
July 17 Declared a 10 percent stock dividend on common stock to be distributed on August 10 to stockholders of record on July 31. Market value of the stock was $5 per share on this date.
31 Date of record.
Aug. 10 Distributed the stock dividend declared on July 17.
Sept. 1 Declared a $0.50 per share cash dividend on common stock to be paid on September 16 to stockholders of record on September 10.