Stock Dividends

1. Prepare journal entries for the declaration and distribution of the 10% common stock dividend. If an amount box does not require an entry, leave it blank.

2. Assume Kaufman Company declared a stock dividend of 30% rather than 10%. Prepare journal entries for the declaration and distribution of the 30% common stock dividend. If an amount box does not require an entry, leave it blank.

Kaufman Company currently has 180,000 shares of $1 par common stock outstanding. On March 15, a 10% stock dividend was declared to shareholders of record on April 2, distributable on April 14. Market value of the common stock was estimated at $8 per share.1. Prepare journal entries for the declaration and distribution of the 10% common stock dividend. If an amount box does not require an entry, leave it blank.

DATE

ACCOUNT TITLE

DOC.
NO.

POST.
REF.

DEBIT

CREDIT

1

20-- Mar. 15

Stock Dividends

1

2

Stock Dividends Distributable

2

3

Paid-In Capital in Excess of Par-Common Stock

3

4

4

5

Apr. 14

Stock Dividends Distributable

5

6

Common Stock

6

7

72. Assume Kaufman Company declared a stock dividend of 30% rather than 10%. Prepare journal entries for the declaration and distribution of the 30% common stock dividend. If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-- Mar. 15	Stock Dividends					1
2		Stock Dividends Distributable					2
3							3
4	Apr. 14	Paid-In Capital in Excess of Par-Common Stock					4
5		Stock Dividends Distributable					5
6							6

Answer rating: 100% (QA)

For the preparation of journal entries for the declaration and distribution of stock dividends its crucial to understand the following Declaration Dat... View the full answer