Blue Spruce Corp. has 325,000 shares of $10 par value common stock outstanding. It declares an 11% stock dividend on December 1 when the market price per share is $17. The dividend shares are issued on December 31.Prepare the entries for the declaration and distribution of the stock dividend. *(Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)*| Date | Account Titles and Explanation | Debit | Credit ||------------|--------------------------------------|-------|--------|| | | | || | | | || | | | || | | | |This table is used to record journal entries related to the stock dividend. The "Date" column records the date of each entry. "Account Titles and Explanation" details the account affected by the transactions. The "Debit" and "Credit" columns are used to record the amounts.

Journal entry: It is a systematic record of a financial transaction of an organization recorded in chronological order.Pass necessary journal entry. Working notes: Compute the stock dividend.

Answered: Prepare the entries for the declaration…

Business

Accounting

Prepare the entries for the declaration and distribution of the stock dividend. Breconted in the orel nm Crodit acco omatic indo

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Blue Spruce Corp. has 325,000 shares of $10 par value common stock outstanding. It declares an 11% stock dividend on December 1 when the market price per share is $17. The dividend shares are issued on December 31.

Prepare the entries for the declaration and distribution of the stock dividend. *(Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)*

| Date | Account Titles and Explanation | Debit | Credit |
|------------|--------------------------------------|-------|--------|
| | | | |
| | | | |
| | | | |
| | | | |

This table is used to record journal entries related to the stock dividend. The "Date" column records the date of each entry. "Account Titles and Explanation" details the account affected by the transactions. The "Debit" and "Credit" columns are used to record the amounts.

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