Snols Corporation has 30,000 shares of its $1 par value common stock outstanding. Record in journal form

Question:

Snols Corporation has 30,000 shares of its $1 par value common stock outstanding. Record in journal form the following transactions as they relate to the company’s common stock:

July17Declared 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.

31Date of record

Aug 10Distributed the stock dividend declared on July 17.

Sep 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.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...