5. Nutritious Pet Food Company’s board of directors declares a large stock dividend (50%) on June 30 when the stock’s market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury).Treasury StockBuildingCommon StockAdditional Paid-in Capital from Common StockCashLandRetained EarningsCommon Stock Dividend DistributableCash Dividends PayablePreferred StockEquipmentAdditional Paid-in Capital from Preferred StockPrepare the following two journal entries.PLEASE NOTE: You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars using "$" and commas as needed (i.e. $12,345).June 30 - Record the declaration of a stock dividend: DR CR July 31 - Record the distribution of the stock dividend: DR CR

The dividend is declared to the shareholders from the retained earnings of the business. The stock…

Answered: Nutritious Pet Food Company’s board of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Nutritious Pet Food Company’s board of directors declares a large stock dividend (50%) on June 30 when the stock’s market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury).

Treasury Stock	Building	Common Stock
Additional Paid-in Capital from Common Stock	Cash	Land
Retained Earnings	Common Stock Dividend Distributable	Cash Dividends Payable
Preferred Stock	Equipment	Additional Paid-in Capital from Preferred Stock

Prepare the following two journal entries.

PLEASE NOTE: You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars using "$" and commas as needed (i.e. $12,345).