Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. stock dividends witt corporation has 70,000 shares

Stock Dividends Witt Corporation has 70,000 shares of $5 par value common stock outstanding. At...

80.2K

Verified Solution

Question

Accounting

image

Stock Dividends Witt Corporation has 70,000 shares of $5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $21 per share. Four weeks later, the company issues the shares of stock to stockholders. a. Prepare the journal entry for the declaration of the stock dividend b. Prepare the journal entry for the issuance of the stock dividend. c. Assume that the company declared a 30 percent stock dividend rather than a five percent stock dividend. Prepare the journal entries for (1) the declaration of the stock dividend and (2) the issuance of the stock dividend. General Journal Ref Description Debit Credit Stock Dividends 1,470,000 X Stock Dividend Distributable 147,000X Paid-in-Capital in Excess of Par Value To record declaration of stock dividend b. Stock Dividend Distributable 1,470,000 X Common Stock 1,470,000 X Issued common stock for stock dividend. c.1 Stock Dividends Stock Dividend Distributable To record declaration of stock dividend c. 2) Stock Dividend Distributable Common Stock 0 X Issued common stock for stock dividend. Check

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

A rectangular garden of area 50 square feet is to be surrounded on three sides by...

Basic Math
1.2K views

You wish to test the following claim ( H a ) at a significance level of...

Biology
1.2K views

What are the three mechanisms of horizontal gene transfer? Describe each of the three in detail....

Medical Sciences
1.2K views

Explain the process of contraction of:    Skeletal muscle and cardiac muscle (show the differences between them) Smooth muscle   Draw...

Physics
1.2K views

3 0 5 m s 4 50 m s In an LCR series ac circuit...

Geometry
1.2K views

2 Use the diagram to answer the two questions a What is the best name...

Basic Math
1.2K views

If DnF DnG is it necessarily true that F G Explain why or provide a...

Calculus
1.2K views

Solve the differential equation by variation of parameters 2y 4y 4y e sec x y...

Calculus
1.2K views

Use Newton s method to estimate the two zeros of the following function Start with...

Calculus
1.2K views

An auditorium with a flat floor has a large screen on one wall The lower...

Accounting
1.2K views

Y is a general partner in the XYZ Partnership. For the current calendar year, Ys...

Accounting
1.2K views

What are the procedures of enlistment in context with the Value Added Tax and Supplementary...