Cash Dividend - A corporation has the following shares outstanding: · 8,000 shares of $50 par value, six percent preferred stock . 50,000 shares of $1 par value common stock. At year-end, the company declares a cash dividend of $134,000. Required: Prepare the journal entry to declare and distribute the cash dividend. Stock Dividend - A corporation has 80,000 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 $20 per share.
Cash Dividend - A corporation has the following shares outstanding: · 8,000 shares of $50 par value, six percent preferred stock . 50,000 shares of $1 par value common stock. At year-end, the company declares a cash dividend of $134,000. Required: Prepare the journal entry to declare and distribute the cash dividend. Stock Dividend - A corporation has 80,000 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 $20 per share.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:**Cash Dividend**
A corporation has the following shares outstanding:
- 8,000 shares of $50 par value, six percent preferred stock
- 50,000 shares of $1 par value common stock.
At year-end, the company declares a cash dividend of $134,000.
**Required:** Prepare the journal entry to declare and distribute the cash dividend.
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**Stock Dividend**
A corporation has 80,000 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 $20 per share.
**Required:**
a) Prepare the journal entry to declare and issue the above stock dividend.
b) Assume that the company declared a 30 percent stock dividend rather than a five percent stock dividend. Prepare the journal entry to declare and issue the above stock dividend.
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