Stock Dividends Witt Corporation has 80,000 shares of $5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $20 per share. Four weeks later, the company issues the shares of stock to stockholders.a. Prepare the journal entry for the declaration of the stock dividend.b. Prepare the journal entry for the issuance of the stock dividend.c. Assume that the company declared a 30 percent stock dividend rather than a five percent stock dividend. Prepare the journal entries for (1) the declaration of the stock dividend and (2) the issuance of the stock dividend. General Journal Ref. Description Debit Credit a. Answer Answer Answer Answer Answer Answer Paid-in-Capital in Excess of Par Value Answer Answer To record declaration of stock dividend. b. Answer Answer Answer Answer Answer Answer Issued common stock for stock dividend. c. 1) Answer Answer Answer Answer Answer Answer To record declaration of stock dividend. c. 2) Answer Answer Answer Answer Answer Answer Issued common stock for stock dividend.
Stock Dividends Witt Corporation has 80,000 shares of $5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $20 per share. Four weeks later, the company issues the shares of stock to stockholders.a. Prepare the journal entry for the declaration of the stock dividend.b. Prepare the journal entry for the issuance of the stock dividend.c. Assume that the company declared a 30 percent stock dividend rather than a five percent stock dividend. Prepare the journal entries for (1) the declaration of the stock dividend and (2) the issuance of the stock dividend. General Journal Ref. Description Debit Credit a. Answer Answer Answer Answer Answer Answer Paid-in-Capital in Excess of Par Value Answer Answer To record declaration of stock dividend. b. Answer Answer Answer Answer Answer Answer Issued common stock for stock dividend. c. 1) Answer Answer Answer Answer Answer Answer To record declaration of stock dividend. c. 2) Answer Answer Answer Answer Answer Answer Issued common stock for stock dividend.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Stock Dividends
Witt Corporation has 80,000 shares of $5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $20 per share. Four weeks later, the company issues the shares of stock to stockholders.
a. Prepare the
b. Prepare the journal entry for the issuance of the stock dividend.
c. Assume that the company declared a 30 percent stock dividend rather than a five percent stock dividend. Prepare the journal entries for (1) the declaration of the stock dividend and (2) the issuance of the stock dividend.
| General Journal | |||
|---|---|---|---|
| Ref. | Description | Debit | Credit |
| a. | Answer | Answer | Answer |
| Answer | Answer | Answer | |
| Paid-in-Capital in Excess of Par Value | Answer | Answer | |
| To record declaration of stock dividend. | |||
| b. | Answer | Answer | Answer |
| Answer | Answer | Answer | |
| Issued common stock for stock dividend. | |||
| c. 1) | Answer | Answer | Answer |
| Answer | Answer | Answer | |
| To record declaration of stock dividend. | |||
| c. 2) | Answer | Answer | Answer |
| Answer | Answer | Answer | |
| Issued common stock for stock dividend. |
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