journal entry for the declaration of the stock dividend is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Davis Enterprises has 188,000 shares of $5 par value common stock outstanding. Davis
declares a 35% stock dividend on March 2 when the stock's market value is $69 per share. The
journal entry for the declaration of the stock dividend is:
dr. Retained Earnings 4,540,200, cr. Common Stock Distributable 4,540,200
dr. Retained Earnings 329,000, cr. Common Stock Distributable 329,000
dr. Common Stock Distributable 329,000, cr. Retained Earnings 329,000
O dr. Cash 4,540,200, cr. Common Stock 4,540,200
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