Question

On September 15, 2021, the Scottie Company board of directors declared a 8% stock dividend on common shares. The shares are to be distributed on October 10, 2021, to shareholders of record on October 1, 2021. The market price per share on the date of declaration was $24.4 while the market price on the date of distribution was $26.4. The common stock has a par of $5 per share and there were 1,200,000 shares outstanding prior to the declaration of the stock dividend.

Required:
Prepare any necessary journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 Record declaration of common stock dividend. Note: Enter debits before credits. General Journal Debit Credit Date September 15, 2021 Record entry View general Journal Clear entry

Answer 1

Date General Journal Debit Credit

Sept 15 Stock dividend $2,342,400

(1,200,000*8%*24.4)

Common Stock dividend distributable $480,000

(1,200,000*8%*5)

Paid in capital in excess of par- $1,862,400

Common Stock

Oct 1 No Journal entry

Oct 10 Common Stock dividend $480,000

distributable

Common Stock $480,000