Landry Inc. has 10,000 shares of commonstock, $1 par outstanding. On September30, 2020, Landry declaresa stock split effected in the form of a100% stock dividend when the fair valueof its common stock is $30 pershare. Distribution of the dividend will beon October 15, 2020.a. Prepare the journal entry for thedeclaration of the stock dividend onSeptember 30, 2020.b. Prepare the journal entry for thedistribution of the stock dividend onOctober 15, 2020

A stock dividend is a corporate action in which a company distributes additional shares of its own…

Answered: a. Prepare the journal entry for the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a. Prepare the journal entry for the declaration of the stock dividend on 30, 2020. September b. Prepare the journal entry for the distribution of the stock dividend on October 15, 2020