Preparing Entries for Small Stock Dividends Landry Inc. has 20,000 shares of common stock, $1 par outstanding. On September 30, 2020, Landry declares a 10% stock dividend when the fair value of its common stock is $30 per share. Distribution of the dividend will be on October 15, 2020. a. Prepare the journal entry for the declaration of the stock dividend on September 30, 2020. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Sept. 30, 2020 Account Name Dr. Cr. ♦ + Check b. Prepare the journal entry for the distribution of the stock dividend on October 15, 2020. Date Account Name Dr. Cr. Oct 15, 2020 + + 0 0 0 0 0 0 0 0 0 0
Preparing Entries for Small Stock Dividends Landry Inc. has 20,000 shares of common stock, $1 par outstanding. On September 30, 2020, Landry declares a 10% stock dividend when the fair value of its common stock is $30 per share. Distribution of the dividend will be on October 15, 2020. a. Prepare the journal entry for the declaration of the stock dividend on September 30, 2020. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Sept. 30, 2020 Account Name Dr. Cr. ♦ + Check b. Prepare the journal entry for the distribution of the stock dividend on October 15, 2020. Date Account Name Dr. Cr. Oct 15, 2020 + + 0 0 0 0 0 0 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Preparing Entries for Small Stock Dividends
Landry Inc. has 20,000 shares of common stock, $1 par outstanding. On September 30, 2020, Landry declares a 10% stock dividend when the fair value of its common stock is $30 per
share. Distribution of the dividend will be on October 15, 2020.
a. Prepare the journal entry for the declaration of the stock dividend on September 30, 2020.
Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.
Date
Account Name
Dr.
Cr.
Sept. 30, 2020
◆
Check
◆
b. Prepare the journal entry for the distribution of the stock dividend on October 15, 2020.
Date
Account Name
Dr.
Cr.
Oct 15, 2020
0
0
0
+
◆
0
0
0
0
0
0
0
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