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Required information Exercise 11-6 Stock dividends and per share book values LO P2 [The following information applies to theExercise 11-6 Part 1 1. Prepare entries to record both the dividend declaration and its distribution. View transaction list JView transaction list Journal entry worksheet 22 Record the distribution of 16% stock dividend. Note: Enter debits before cre

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Answer #1
Debit Credit
Feb 05 Retained earnings 296800 =53000*16%*35
       Common stock dividend distributable 84800 =53000*16%*10
        Paid-in capital in excess of par value, Common stock 212000
Feb 28 Common stock dividend distributable 84800
     Common stock, $10 par value 84800
2
Before After
Book value per share 32.642 28.139
Total book value of shares 17953 17953
Workings:
Before After
Total stockholders’ equity 1730000 1730000
Divide by Issued and distributable shares 53000 61480
Book value per share 32.642 28.139
X Shares owned 550 638
Total book value of shares 17953 17953
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