Stock Dividends Penguin Company has the following information regarding its common stock: $17 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares outstanding. On August 22, Penguin declared and paid a 15% stock dividend when the market price of the common stock was $28 per share. Required: 1. Prepare the journal entries to record declaration and payment of this stock dividend. If an amount box does not require an entry, leave it blank. Aug. 22 Dividends Declared Common Stock Additional Paid-to Capital-Common Stock Feedback Owck My Won 1. Small stock dividends are capitalized using the stock's market value, while large stock dividends are capitalized at the stock's par value 2. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend. If an amount box does not require an entry, leave it blank. Aug. 22 Dividends Declared 88 Common Stock Feedback

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
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Stock Dividends
Penguin Company has the following information regarding its common stock: $17 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares
outstanding.
On August 22, Penguin declared and paid a 15% stock dividend when the market price of the common stock was $28 per share.
Required:
1. Prepare the journal entries to record declaration and payment of this stock dividend. If an amount box does not require an entry, leave it blank.
Aug. 22 Dividends Declared
Common Stock
✓
EE
Additional Paid-in Capital-Common Stock
Feedback
Oeck My Won
1. Small stock dividends are capitalized using the stock's market value, while large stock dividends are capitalized at the stock's par value
2. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend. If an amount box does not require an entry, leave it blank
Aug. 22 Dividends Declared
88
Common Stock
Transcribed Image Text:Stock Dividends Penguin Company has the following information regarding its common stock: $17 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares outstanding. On August 22, Penguin declared and paid a 15% stock dividend when the market price of the common stock was $28 per share. Required: 1. Prepare the journal entries to record declaration and payment of this stock dividend. If an amount box does not require an entry, leave it blank. Aug. 22 Dividends Declared Common Stock ✓ EE Additional Paid-in Capital-Common Stock Feedback Oeck My Won 1. Small stock dividends are capitalized using the stock's market value, while large stock dividends are capitalized at the stock's par value 2. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend. If an amount box does not require an entry, leave it blank Aug. 22 Dividends Declared 88 Common Stock
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