Question

Entries for Stock Dividends

Madrid Corporation has 26,000 shares of $30 par common stock outstanding. On June 8, Madrid Corporation declared a 5% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $36 per share on June 8.

Journalize the entries required on June 8, July 13, and August 12. For a compound transaction, 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.

Jun. 8
Jul. 13
Aug. 12

Entries for Treasury Stock

On May 27, Kick Off Inc. reacquired 6,900 shares of its common stock at $54 per share. On August 3, Kick Off sold 3,000 of the reacquired shares at $57 per share. November 14, Kick Off sold the remaining shares at $53 per share.

Journalize the transactions of May 27, August 3, and November 14. For a compound transaction, if an amount box does not require an entry, leave it blank.

May 27
Aug. 3
Nov. 14

Answer 1

1.

June	8	Stock Dividends (26,000 shares * 5% * $36)	$46,800
		Stock Dividends Distributable (1,300 shares * $30)		$39,000
		Paid-in Capital in excess of par-
		Common stock (1,300 shares * ($36 - $30))		$7,800
July	13	No Entry required
Aug	12	Stock Dividends Distributable	$39,000
		Common Stock		$39,000

2.

May	27	Treasury stock (6,900 shares * $54)	$372,600
		Cash		$372,600
Aug	3	Cash (3,000 shares * $57)	$171,000
		Treasury stock (3,000 shares * $54)		$162,000
		Paid-in capital from sale of
		Treasury stock (3,000 * ($57 - $54))		$9,000
Nov	14	Cash (3,900 shares * $53)	$206,700
		Paid-in capital from sale of
		Treasury stock (3,900 shares * ($54 - $53))	$3,900
		Treasury stock (3,900 shares * $54)		$210,600

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