Question

Question 4

Entries for Stock Dividends Vienna Corporation has 36,000 shares of $80 par common stock outstanding. On August 2, Vienna Corporation declared a 4% stock dividend to be issued October 8 to stockholders of record on September 15. The market price of the stock was $113 per share on August 2. Journalize the entries required on August 2, September 15, and October 8. If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank. Aug. 2 Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Par-Common Stock Sept. 15 No Entry Required No Entry Required II II II II 01 010 Stock Dividends Distributable Oct. 8 Common Stock

Answer 1

Journal Entry Answer Date General Journal Debit Credit Aug. 2 Stock Dividends $162,720 $115,200 Stock Dividends Distributable $47,520 Paid-In Capital in Excess of Par - Common Stock (To record the stock Dividends) --No Entry Required-- Sept. 15 Stock Dividends Distributable $115,200 Oct. 8 $115,200 Common Stock (To record the common stock) Explanations Calculations Stock Dividends 36,000 shares x 4% x $113 per share $162,720 Stock Dividends Distributable 36,000 shares x 4% x $80 per share $115,200 Paid In Capital In Excess Of Par-Common Stock 36,000 shares x 4% x ($113 - $80) per share $47,520