Question

Brief Exercise 14-03 Concord Corporation has 41,500 shares of $12 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $18. The dividend shares are issued on December 31. Prepare the entries for the declaration and issuance of the stock dividend. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit

Answer 1

Answer

Date	Accounts title	Debit	Credit
01-Dec	Stock dividend (41500 shares x 15% x $ 18)	$112,050
	Stock dividend distributable (41500 shares x 15% x $ 12 par)		$74,700
	Paid in Capital in excess of Par - Common Stock		$37,350
	(to record declaration)
31-Dec	Stock dividend distributable (41500 shares x 15% x $ 12 par)	$74,700
	Common Stock		$74,700
	(to record distribution)