Chapter 10, Problem 37BE

Accounting for stock dividends (Learning Objectives 5 & 7) 10-15 min.

The stockholders' equity for Coeur d’Alene Marina, Inc., on December 31, 2017, follows:

Stockholders' Equity
Paid-in Capital:
Common Stock, $1 par, 300,000 shares authorized, 90,000 issued and outstanding	$ 90,000
Paid-in Capital in Excess of Par—Common	360,000
Total Paid-in Capital	450,000
Retained Earnings	330.000
Total Stockholders’ Equity	$780,000

On May 31, 2018, the market price of Coeur d’Alene Marina, Inc.’s common stock was $17 per share, and the company distributed a 5 percent stock dividend.

Requirements

1. 1. Journalize the declaration and distribution of the stock dividend.
2. 2. Prepare the stockholders’ equity section of the balance sheet after the stock dividend.