Question

Fitness Schools, Inc. is wuthorized to sue 200.000 shares of common stock. The company issued 74,000 shares per share. When the market price of common stock was a persham, Fress declared and did 10 dividend. Later, Fitness declared and paid a $0.50 per share cash dividend. Read the requirements Requirement 1. Joumalize the declaration and the debution of the dock vitend. (ecord debts fast, then credia. Select the explanation on the last fine of the joumal entry table) First, journaline the declaration of the stock dividend. Accounts and Explanation Date Debit Crede Now journal the distribution of the stock dividend Date Accounts and Explanation Debut Credit Requirement 2. Joumaline the declaration and payment of the cash dividend Record debit fut, the credits Select the explanation on the last line of the Jumal try table) Begin by journaling the declaration of the cash dividend Choose from any list or enter any number in the input fields and then continue to the next question

Answer 1

Stock dividend = 74,000*15% Stock dividend = 11,100 shares Date Credit Debit $ 88,800 Account Titles and Explanataions Stock dividends (11,100*$8) Common stock dividend distributable (11,100*54) Paid in capital in excess of par - Common stock ($88,800-$44,400) (To record the declaration of stock dividends) $ 44,400 $ 44,400 $ 44,400 Common stock dividend distributable Common stock (To record the distribution of stock dividend.) $ 44,400 Date Debit Credit $ 42,550 Account Titles and Explanataions Cash dividends [(74,000 + 11,100) *$0.50] Dividends payable-Common (To record the declaration of cash dividends) $ 42,550 $ 42,550 Dividends payable-Common Cash (To record the payment of cash dividend) $ 42,550