You just received the following e- mail dated November 30 from one of your corporations stockholders: Help!

You just received the following e- mail dated November 30 from one of your corporation€™s stockholders:
€œHelp! Please explain why I haven€™t received my dividend check. I own 100 shares that I bought at $ 30, and they are now selling for $ 35. I read in the annual report that the board of directors declared a 10 percent stock dividend, but I haven€™t received a dime yet. What is going on? Where is my dividend check? I was a stockholder of record on the declaration date of the dividend.€
Assume that he was a stockholder of record for both of the following dividends. The following selected journal entries may help you answer hisquestions.

Transcribed Image Text:

GENERAL JOURNAL Page 78 Post. Ref. Credit Date 20- Sept 15 Retained Earmings Description Debit 98 000 00 Stock Dividend Distributable Paid.in Capital in Excess of Par Value 65 0 0 0 00 33 0 0 0 00 To record the declaraton of a 10 percent stock dividend to stockholders of record as of September 30, distributable on October 9 Oct. 9 Stock Dividend Distibutable 65 0 0 0 00 Common Stock 65 0 0 0 00 Issuance of a stock dividend declared on September 15 to stockholders of record as of September 30 Nov 17 Retained Earnings 74 8 00 00 Dividends Payable 74 8 0 0 00 To record the declaration of a cash dividend of $6.80 per share to stockholders of Racord as of November 30 payable on December 9. Dec Dividends Payable 74 8 0 0 00 Cash 74 8 00 00 Payment of cash dividend declared on November 17