Question

- Your answer is partially correct. 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 Dec. 1 Retained Earnings 112,050 Common Stock Dividends Distributable 74,700 Paid-in Capital in Excess of Par-Common Stock 37,350 Dec. 31 Common Stock Dividends Distributable 74,700 Common Stock 74,700

Answer 1

a) Journal entry

Date	account title and explanation	Debit	Credit
Dec 1	Stock dividend	112050
	Common Stock dividend distributable		74700
	Paid in capital in excess of par-Common Stock		37350
Dec 31	Common Stock dividend distributable	74700
	Common Stock		74700

b) Journal entry

Date	account title and explanation	Debit	Credit
Oct 10	Stock dividend	16000
	Common Stock dividend distributable		1000
	Paid in capital in excess of par-Common Stock		15000
Oct 31	Common Stock dividend distributable	1000
	Common Stock		1000