Question

PS STUDENT NIGHTp ewconnectmheducatRHALEN Company Z has 215 million shares of common stock authorized with a par value of $1 and a market price of $53. There are 1075 million outstanding shares and 26875 million shares held in treasury stock Required: a. Prepare the journal entry if the company declares and distributes a 10% stock dividend b. Show the effect of the stock dividend on assets abes, and stockholders' equity Prepare the journal entry of the company declares and distributes a 100% stock dividend d. Show the effect of the 100% stock dividend on assets bites, and stockholders' equity Complete this question by entering your answers in the table below Required A Required B Required Required D Prepare the journal entry the company declares and distributes a 10% stock dividend (feantry is required for a transaction/event, select "No Journal Entry Required in the account field. Enter your answers in dollars and noti ons View transaction list Journal entry worksheet Record the declaration and distribution of the 10 stock dividend. Transaction < Pray 4 of 4 Next >

Answer 1

a	General Journal	Debit ($)	Credit ($)
	Stock Dividend a/c…Dr   (1075000*10%*53)	$5697500
	Common stock a/c (1075000*10%)		$107500
	Paid in capital in excess of par common stock		$5590000
	(being declare and distribution of stock dividend)
b	Assets                                                  =	Liabilities	+	Stockholder's equity
				Retained earnings	($5697500)
				Common stock	$107500
				Paid in capital in	$5590000
				excess of par common
				stock
c	General Journal	Debit ($)	Credit ($)
	Stock Dividend a/c…Dr (1075000*100%*1)	$1075000
	Common stock a/c		$1075000
	(being declare and distribution of stock dividend)
d	Assets                                                  =	Liabilities	+	Stockholder's equity
				Retained earnings	($1075000)
				Common stock	$1075000