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can someone please help me with this question Cash and stock dividends lester corporation has 30,000 shares of $1 par va...

can someone please help me with this question Cash and stock dividends lester corporation has 30,000 shares of $1 par value common stock outstanding. The company has 250,000 of retained earnings. at year end the company declares cash dividends of $3.00 per share and a 5 percent stock dividend. the market price of the stock at the declaration date is $40 per shatre. three weeks later the company pays the dividends a) prepare the journal entry for the declaration of the cash dividend b) prepare the journal entry for the declaration of stock dividend c) prepare the journal entry for the payment of cash dividend d) prepare the journal entry for the payment of the stock dividend

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Answer #1
No. Accounts Debit Credit
a. Dividend (30000*3) 90000
Dividend Payable 90000
b. Stock Dividend (30000*5%*40) 60000
Stock Dividend Payable 60000
c. Retained earnings 90000
Dividend Payable 90000
d. Retained earnings 60000
Common stock (30000*1*5%) 1500
Additional paid in capital 58500
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