On September 1, the board of directors of a company, declares a stock dividend on its 22,000, $13 par, common shares. The market price of the common stock is $42 on this date.Required:1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split. need help **Journal Entries Overview**This table details a series of journal entries made on September 1st. The journal entries include transactions related to retained earnings and stock dividends. Below is a transcription and explanation of each entry:1. **Entry No. 1** - **Date:** September 01 - **General Journal:** - **Debit:** Retained Earnings - $92,400 - **Credit:** - Common Stock - $28,600 - Additional Paid-in Capital - $63,800 - **Explanation:** This entry records a distribution of retained earnings into common stock and additional paid-in capital.2. **Entry No. 2** - **Date:** September 01 - **General Journal:** - **Debit:** Stock Dividends - $924,000 - **Credit:** - Common Stock - $286,000 - Additional Paid-in Capital - $638,000 - **Explanation:** This entry acknowledges the issuance of stock dividends impacting common stock and additional paid-in capital accounts.3. **Entry No. 3** - **Date:** September 01 - **General Journal:** No Journal Entry Required - **Explanation:** There is a notation indicating no transaction or journal entry is required for this particular instance.This table exemplifies the allocation of financial resources and the recording of transactions within a company's accounting system, serving as a critical tool for financial management and reporting.

Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Answered: On September 1, the board of directors…

On September 1, the board of directors of a company, declares a stock dividend on its 22,000, $13 par, common shares. The market price of the common stock is $42 on this date. Required:

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

On September 1, the board of directors of a company, declares a stock dividend on its 22,000, $13 par, common shares. The market price of the common stock is $42 on this date.

Required:
1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split.

need help

**Journal Entries Overview**

This table details a series of journal entries made on September 1st. The journal entries include transactions related to retained earnings and stock dividends. Below is a transcription and explanation of each entry:

1. **Entry No. 1**
- **Date:** September 01
- **General Journal:**
- **Debit:** Retained Earnings - $92,400
- **Credit:**
- Common Stock - $28,600
- Additional Paid-in Capital - $63,800
- **Explanation:** This entry records a distribution of retained earnings into common stock and additional paid-in capital.

2. **Entry No. 2**
- **Date:** September 01
- **General Journal:**
- **Debit:** Stock Dividends - $924,000
- **Credit:**
- Common Stock - $286,000
- Additional Paid-in Capital - $638,000
- **Explanation:** This entry acknowledges the issuance of stock dividends impacting common stock and additional paid-in capital accounts.

3. **Entry No. 3**
- **Date:** September 01
- **General Journal:** No Journal Entry Required
- **Explanation:** There is a notation indicating no transaction or journal entry is required for this particular instance.

This table exemplifies the allocation of financial resources and the recording of transactions within a company's accounting system, serving as a critical tool for financial management and reporting.

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