Question

Entries for Stock Dividends Zurich Corporation has 17,000 shares of $50 par common stock outstanding. On June 8, Zurich Corporation declared a 4% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $69 per share on June 8. Journalize the entries required on June 8, July 13, and August 12. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank.Aug. 2 Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Par-Common Stock Sept. 15 No entry required No entry required Oct. 8 Stock Dividends Distributable Common Stock

Answer 1

Date Account Title and Description Debit Credit

June 8 Stock Dividends $46,920

Stock Dividends Distributable $34,000

Paid-in-Capital in Excess of Par $12,920

common stock

(Being Dividend declared recorded)

July 13 No entry required

No entry required

Aug 12. Stock Dividends Distributable $34,000

Common stock $34,000

(Being Dividend declared as par value recorded)

Working Notes:

Stock dividend = 17,000 * 4% * $69 = $46,920

Stock dividend distributable = 17,000 * 4% * $50 = $34,000

Paid in capital in excess of par - Common stock = $46,920 - $34,000 = $12,920