Prepare journal entries for the following independent transactions a) A stock dividend of 20% is declared at their fair value on June 1, 2025 and issued on June 30 to the shareholders of record on June 15. The common shares were trading for $15 on June 1, 2025. b) A stock dividend of 100% is declared on June 1, 2025 at their fair value and issued on June 30 to the shareholders of record on June 15. The common shares were trading for $15 on June 1, 2015. c) a 2-for-1 stock split is declared on June 1, 2025 at their fair value and issued on June 30 to the shareholders of record on June 15.
Prepare
a) A stock dividend of 20% is declared at their fair value on June 1, 2025 and issued on June 30 to the shareholders of record on June 15. The common shares were trading for $15 on June 1, 2025.
b) A stock dividend of 100% is declared on June 1, 2025 at their fair value and issued on June 30 to the shareholders of record on June 15. The common shares were trading for $15 on June 1, 2015.
c) a 2-for-1 stock split is declared on June 1, 2025 at their fair value and issued on June 30 to the shareholders of record on June 15.
Stock Dividend
Stock Dividend - It is a process wherein company distributes the shares to its shareholders rather than paying dividend in cash.
Journal Entry: Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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