Question

On June 30, the board of directors of Sandals, Inc., declares and pays a 100% stock dividend on its 22,000, $1 par, common shares. The market price of Sandals common stock is $27 on June 30. Record the stock dividend. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Debit Dividend for $22,000, and Credit Cash also for $22,000.

Step-by-step explanation:

Amount of dividend paid = 22,000 * $1 = $22,000

The journal entries will be as follows:

Date Details Dr ($) Cr ($)

June 30 Dividend 22,000

Cash 22,000

To record cash dividend paid to common stockholders