Question

Brief Exercise 11-8

Langley Corporation has 48,600 shares of $10 par value common stock outstanding. It declares a 10% stock dividend on December 1 when the market price per share is $17. The dividend shares are issued on December 31.

Prepare the entries for the declaration and payment of the stock dividend. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 1Dec. 31
Dec. 1Dec. 31

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Dec-31	Stock Dividend (48600 X 10% X $17)	$       82,620
	Stock Dividend Distributable (48600 X 10% X $10)		$       48,600
	Paid - in - capital in excess of Par (48600 X 10% X $7)		$       34,020
	(Being Stock dividend declared)
Dec-31	Stock Dividend Distributable	$       48,600
	Common stock		$       48,600