Question

Entries for Stock Dividends
Paris Corporation has 23,000 shares of $70 par common stock outstanding. On June 8,Paris Corporation declared a 3% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $81 per share on June 8.
Journalize the entries required on June 8, July 13,and August 12. For a compound transaction, if an amount does not require an entry, leave it blank. If no entry required, select "No Entry Required " and leave the amount boxes blank.

Answer 1

Journal Entries
Date	Account Title and explanation	Debit	Credit
June , 08	Retained Earning ( 23,000 Shares X 3% ) = 690 Shares X $ 81	$                  55,890
	To Stock Dividend Payable		$                     55,890
	(To Record the stock dividend payable)
July , 13	Record date : This is a date which is taken for shareholders holding the share as on date and distribute in future
	Holding the shares as on july 13 is eligible for stock dividend
	" No Entry Required)
August , 12	Stock dividend Payble	$                  55,890
	To Share Capital		$                     48,300
	To Addittional paid in capital - Common Stock
	(to record the issue of stock dividend)