Question

Fitness School, Inc. is authorized to issue 200,000 shares of porcommon stock. The company med 74,000 shares of 36 per share. When the price of common stock was 18 per here te declared and disreda 10 dividend. Later Fitness declared and paid a 50 per share cash dividend Read the requirements Requirement 1. Jumatra decoration and the distribution of the stock dividend Record debits first, then refered the pation on the lastne of the marrie First journal the decision of the stock dividend Date Accounts and planten Debit Crede Now the distribution of the stock dividend Date Accounts and Explanation Dube Cred

Answer 1

Jowinal Entry Date Debit Credit 88,800 salution ! Account Titles and explanation Retained Earnings 88,800 Common & tock Dividend Distributable (To record declaration of isy, stock Dividend) [74,000x 154.x88 market Price) common stock Dividend 88,800 Disteibutable common stock (11,100X $4) Paid in capital in excess of par (11,100 x $4) To record distribution of stock Dividend) [74.000 x 15). Requirementa) 44,400 44,400 Date 37,000 Dividend payable Accounts Titles and Explanation Debits Credit Rerained Earnings (74,000x 40.3") 37,000 (To record the declaration of cash Dividend) Dividend payable 37,000 37,000 cash (To pay the cash Dividends. to shareholderes)