Prepare the entries the declaration & issuance of the stock dividend

Langley Corporation has 50,000 shares of $10 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $16. The dividend shares are issued on December 31. Prepare the entries for the declaration and issuance of the stock dividend.

Expert Solution

Date	Account Titles & Explanation	Debit$	Credit$
01 - Dec	Stock dividend A/C (50,000 * 15% * $16)	1,20,000
	To Stock Dividend Distributable A/C ( 50,000 * 15% * $10)		75,000
	To Paid in capital in excess of par - Common A/C Stock A/C( 50,000 * 15% * 6)		45,000
	( To record dividend declared)
31-Dec	Stock Dividend Distributable A/C	75,000
	To Common Stock A/C		75,000
	(To record stock Dividend Distributed)

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balaji rao answered 3 years ago

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