Davis Enterprises has 254,000 shares of $5 par value common stock outstanding. Davis declares a 40% stock dividend on March 2 when the stock's market value is $66 per share. The journal entry for the declaration of the stock dividend is: Question 94 options: Account Title Debit Credit Retained Earnings 508,000 Common Dividend Payable 508,000 Account Title Debit Credit Common Stock Dividend Distributable 508,000 Retained Earnings 508,000 Account Title Debit Credit Retained Earnings 6, 705, 600 Common Stock Dividend Distributable 6, 705, 600 Account Title Debit Credit Retained Earnings 508,000 Common Stock Dividend Distributable 508,000 No journal entry is required for the declaration of a stock dividend.
Davis Enterprises has 254,000 shares of $5 par value common stock outstanding. Davis declares a 40% stock dividend on March 2 when the stock's market value is $66 per share. The journal entry for the declaration of the stock dividend is: Question 94 options: Account Title Debit Credit Retained Earnings 508,000 Common Dividend Payable 508,000 Account Title Debit Credit Common Stock Dividend Distributable 508,000 Retained Earnings 508,000 Account Title Debit Credit Retained Earnings 6, 705, 600 Common Stock Dividend Distributable 6, 705, 600 Account Title Debit Credit Retained Earnings 508,000 Common Stock Dividend Distributable 508,000 No journal entry is required for the declaration of a stock dividend.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Davis Enterprises has 254,000 shares of $5 par value common stock outstanding. Davis declares a 40% stock dividend on
March 2 when the stock's market value is $66 per share. The journal entry for the declaration of the stock dividend is:
Question 94 options: Account Title Debit Credit Retained Earnings 508,000 Common Dividend Payable 508,000 Account
Title Debit Credit Common Stock Dividend Distributable 508,000 Retained Earnings 508,000 Account Title Debit Credit
Retained Earnings 6,705, 600 Common Stock Dividend Distributable 6, 705, 600 Account Title Debit Credit Retained
Earnings 508,000 Common Stock Dividend Distributable 508,000 No journal entry is required for the declaration of a
stock dividend.
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