Question

rief Exercise 15-13 ronghorn Corporation has outstanding 484,000 shares of $10 par value common stock. The corporation declares a 10% stock dividend when the fair value of the stock is $67 per share. repare the journal entries for Pronghorn Corporation for both the date of declaration and the date of distribution. (Credit account titles are automatically indented when amount is entered. Do not indent manually. f no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Account Titles and Explanation Declaration Date Distribution Date

Answer 1

In stock dividend company distributes stock to its shareholders instead of cash as distribution of profit.
Record journal entry for stock dividend declared
Account Title and Explanation	Debit	Credit
Retained earnings (484000*10%*67)	$3,242,800
Paid in capital - excess of par value (484000*10%*57)		$2,758,800
Common stock dividend distributable (484000*10%*10)		$484,000
(To record stock dividend declared)
Record journal entry for stock dividend distributed
Account Title and Explanation	Debit	Credit
Common stock dividend distributable	$484,000
Common stock		$484,000
(To record stock dividend distributed)