Stock Dividends Penguin Company has the following information regarding its common stock: $24 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares outstanding. On August 22, Penguin declared and paid a 15% stock dividend when the market price of the common stock was $28 per share. Required: 1. Prepare the journal entries to record declaration and payment of this stock dividend. If an amount box does not require an entry, leave it blank. Aug. 22 Dividends Declared Common Stock Additional Paid-In Capital-Common Stock Feedback 548,520 ✔ Aug. 22 Dividends Declared Common Stock 470,160 Check My Work 1. Small stock dividends are capitalized using the stock's market value, while large stock dividends are capitalized at the stock's par value. 470,160 78,360 2. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend. If an amount box does not require an entry, leave it blank.
Stock Dividends Penguin Company has the following information regarding its common stock: $24 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares outstanding. On August 22, Penguin declared and paid a 15% stock dividend when the market price of the common stock was $28 per share. Required: 1. Prepare the journal entries to record declaration and payment of this stock dividend. If an amount box does not require an entry, leave it blank. Aug. 22 Dividends Declared Common Stock Additional Paid-In Capital-Common Stock Feedback 548,520 ✔ Aug. 22 Dividends Declared Common Stock 470,160 Check My Work 1. Small stock dividends are capitalized using the stock's market value, while large stock dividends are capitalized at the stock's par value. 470,160 78,360 2. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend. If an amount box does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stock Dividends
Penguin Company has the following information regarding its common stock: $24 par, with 300,000 shares authorized, 132,000 shares issued,
and 130,600 shares outstanding.
On August 22, Penguin declared and paid a 15% stock dividend when the market price of the common stock was $28 per share.
Required:
1. Prepare the journal entries to record declaration and payment of this stock dividend. If an amount box does not require an entry, leave it
blank.
Aug. 22 Dividends Declared
Common Stock
Additional Paid-In Capital-Common Stock
Feedback
548,520 ✔
Aug. 22 Dividends Declared
Common Stock
470,160
Check My Work
1. Small stock dividends are capitalized using the stock's market value, while large stock dividends are capitalized at the stock's par value.
470,160
78,360
2. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend. If an amount box does not require an
entry, leave it blank.
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