Question

Low Corporation has 50,000 shares of $30 par value common stock outstanding and retained earnings of...

Low Corporation has 50,000 shares of $30 par value common stock outstanding and retained earnings of $1,125,000. The company declares a 100 percent stock dividend. The market price at the declaration date is $30 per share.

a. Prepare the journal entries for (1) the declaration of the dividend and (2) the issuance of the dividend.

General Journal
Ref. Description Debit Credit
(1) AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends Answer Answer
AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends Answer Answer
Declared 100% stock dividend.
(2) AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends Answer Answer
AnswerCashCash dividendsCommon stockDividends payableStock dividend distributableStock dividends Answer Answer
Issued stock for 100% stock dividend.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution:

Date Accounts Title and explanation Debit Credit
1 Stock Dividend Dr (50,000*100% *$30) $15,00,000
      To Common Stock Dividend Distributable $15,00,000
2 Common Stock Dividend Distributable Dr $15,00,000
      To Common Stock $15,00,000
Add a comment
Know the answer?
Add Answer to:
Low Corporation has 50,000 shares of $30 par value common stock outstanding and retained earnings of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Stock Dividends Witt Corporation has 80,000 shares of $5 par value common stock outstanding. At year-end, the company d...

    Stock Dividends Witt Corporation has 80,000 shares of $5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $20 per share. Four weeks later, the company issues the shares of stock to stockholders. a. Prepare the journal entry for the declaration of the stock dividend. b. Prepare the journal entry for the issuance of the stock dividend. C. Assume that the company declared...

  • Cash and Stock Dividends Debra Corporation has 24,000 shares of $1 par value common stock outstanding....

    Cash and Stock Dividends Debra Corporation has 24,000 shares of $1 par value common stock outstanding. The company has $200,000 of retained earnings. At year-end, the company declares a cash dividend of $2.00 per share and a five percent stock dividend. The market price of the stock at the declaration date is $24 per share. 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...

  • Stock Dividends Witt Corporation has 80,000 shares of $5 par value common stock outstanding. At year-end,...

    Stock Dividends Witt Corporation has 80,000 shares of $5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $20 per share. Four weeks later, the company issues the shares of stock to stockholders. a. Prepare the journal entry for the declaration of the stock dividend. b. Prepare the journal entry for the issuance of the stock dividend. c. Assume that the company declared...

  • Witt Corporation has 80,000 shares of S5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend.

     Stock Dividends Witt Corporation has 80,000 shares of S5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $20 per share. Four weeks later, the company issues the shares of stock to stockholders. a. Prepare the journal entry for the declaration of the stock dividend. b. Prepare the journal entry for the issuance of the stock dividend. C. Assume that the company declared a 30 percent stock...

  • Sheffeld Corporation has 50,000 shares of 611 par value common stock outstanding. It declares a 15%...

    Sheffeld Corporation has 50,000 shares of 611 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $19. The dividend shares are issued on December 31. Prepare the entries for the deciaration and issuance of the stock dividend. (Record journal entries in the order presented in the problem. Creditr account titles are automatically indented whem amount is entered. Do not indent manually. If no entry is required, select "No...

  • Cheyenne Corporation has outstanding 358,000 shares of $10 par value common stock. The corporation declares a...

    Cheyenne Corporation has outstanding 358,000 shares of $10 par value common stock. The corporation declares a 100% stock dividend when the fair value of the stock is $62 per share. Prepare the journal entries for both the date of declaration and the date of distribution. (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.) Cheyenne Corporation has...

  • Perry Corporation has 120,000 shares of $5 par value common stock outstanding. It declared a 30%...

    Perry Corporation has 120,000 shares of $5 par value common stock outstanding. It declared a 30% stock dividend on June 1 when the market price per share was $12. The shares were issued on June 30. Prepare the necessary entries for the declaration and payment of the stock dividend. Date Account Debit Credit

  • - Your answer is partially correct. Concord Corporation has 41,500 shares of $12 par value common...

    - 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...

  • Brief Exercise 14-03 Concord Corporation has 41,500 shares of $12 par value common stock outstanding. It...

    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...

  • Instructions Vincent Corporation has 95,000 shares of $110 par common stock outstanding. On June 30, Vincent...

    Instructions Vincent Corporation has 95,000 shares of $110 par common stock outstanding. On June 30, Vincent Corporation declared a 6% stock dividend to be issued on July 30 to stockholders of record July 15. The market price of the stock was $118 a share on June 30. Required: Journalize the entries required on June 30 and July 30. i no entry is required, simply skip to the next transaction Refer to the Chart of Accounts for exact wording of account...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT