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Rolly Racing Motors, Inc., is authorized to issue 1,200,000 shares of $2 par common stock....

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Rolly Racing Motors, Inc., is authorized to issue 1,200,000 shares of $2 par common stock. The company issued 74,000 shares at $8 per share, and all 74,000 shares are outstanding. When the market price of common stock was $16 per share, Rolly Racing Motors, Inc., declared and distributed a 15 percent stock dividend. Later, Rolly Racing Motors, Inc., declared and paid a $0.30 per share cash dividend. Requirements 1. Journalize the declaration and distribution of the stock dividend. 2. Journalize the declaration and the payment of the cash dividend. Requirement 1. Journalize the declaration and distribution of the stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Cash Common stock Dividends payable Paid-in capital in excess of par-common Retained earnings nd. (Record debits first, then credits. Exclude explanations from any Requirement 2. journal entries.) Journalize the declaration of the cash dividend. Journal Entry Date Accounts Debit Credit Journalize the payment of the cash dividend. Journal Entry Date Accounts Debit Credit

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