Journalizing cash and stock dividends Self-Defense Schools, Inc. is authorized to issue 200,000 shares of $2 par common stock. The company issued 73,000 shares at $5 per share. When the market price of common stock was $7 per share, Self-Defense Schools declared and distributed a 14% stock dividend Later, Self-Defense Schools declared and paid a $0.70 per share cash dividend. Requirements Journalize the declaration and the distribution of the stock dividend. Journalize the declaration and the payment of the cash dividend.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Journalizing cash and stock dividends

Self-Defense Schools, Inc. is authorized to issue 200,000 shares of $2 par common stock. The company issued 73,000 shares at $5 per share. When the market price of common stock was $7 per share, Self-Defense Schools declared and distributed a 14% stock dividend Later, Self-Defense Schools declared and paid a $0.70 per share cash dividend.

Requirements

  1. Journalize the declaration and the distribution of the stock dividend.
  2. Journalize the declaration and the payment of the cash dividend.
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