Chapter 12, Problem 12.4BE

Entries for stock dividends

Alpine Energy Corporation has 1,500,000 shares of $40 par common stock outstanding. On August 2, Alpine Energy declared a 4% stock dividend to be issued October 8 to stockholders of record on September 15. The market price of the stock was $70 per share on August 2. Journalize the entries required on August 2, September 15, and October 8.