Question

Nelly, Inc. had 320,000 shares of 2 per value common stock und and standing of December 15, 2018. The company in the towe 1.300.000 shares on December 15, 2018 Nelly declared to divided when the market value for Nelly's common stock wa 37 per share. The stock was issued on Dec. 30 Read the girements Requirement Joumate the declaration and Garbution of the weddend. (Record debts to the credite Select the ention on the last line of the journal entry) Start by making the declaration of the stock and Date Accounts and Explanation Deb Credit Dec 15 Now jumal thesion of the word Date Accounts and explanation Dec 30 Debi Credit Requirement How many shares of common stock rewarding the dividend? There shares of common stock landing her the dividend

Answer 1

Credit Answer: Requirment -1 Date Accounts and Explanation Dec 15 Retained Earnings A/C Stock Dividend Distributale A/c Paid in Capital in excess of Par - Common Stock (To record Declaration of Stock Dividend) Debit $ 896,000 $ 256,000 $ 640,000 Dec 30 $ 256,000 Stock Dividend Distributale A/C Common Stock A/C (To record Ditribution of Stock Dividend) $ 256,000 Requirment -2 There are 4,48,000 shares outstanding after the Dividend