Question

In: Accounting

Green Day Corporation has outstanding 400,000 shares of $10 par value common stock.


Green Day Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $65 per share. Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution.

Solutions

Expert Solution

General Journal Debit Credit
Declaration Date
Retained Earnings(400,000 * $65 * 0.05) $1,300,000
Paid-in Capital in Excess of Par $1,100,000
Common Stock Dividend Distributable(400,000 * $10 * 0.05) $200,000
Distribution Date
Common Stock Dividend Distributable $200,000
Common Stock $200,000

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Flounder Corporation has outstanding 517,000 shares of $10 par value common stock. The corporation declares a...
Flounder Corporation has outstanding 517,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $62 per share. Prepare the journal entries for Flounder Corporation for both the date of declaration and the date of distribution. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)...
Tamarisk Corporation has outstanding 125,000 shares of $10 par value common stock. The corporation declares the...
Tamarisk Corporation has outstanding 125,000 shares of $10 par value common stock. The corporation declares the following stock dividends when the fair value of the stock is $65 per share. Prepare the journal entries for Tamarisk Corporation for both the date of declaration and the date of distribution. Stock dividend is 15% Stock dividend is 70%
Flint Corporation has outstanding 2,979,000 shares with common stock of a par value of $10 each....
Flint Corporation has outstanding 2,979,000 shares with common stock of a par value of $10 each. The balance in its Retained Earnings account at January 1, 2017, was $23,993,000, and it then had Paid-in Capital in Excess of Par—Common Stock of $4,983,000. During 2017, the company’s net income was $4,658,000. A cash dividend of $0.60 a share was declared on May 5, 2017, and was paid June 30, 2017, and a 6% stock dividend was declared on November 30, 2017,...
Pina Corporation has outstanding 2,973,000 shares of common stock with a par value of $10 each....
Pina Corporation has outstanding 2,973,000 shares of common stock with a par value of $10 each. The balance in its Retained Earnings account at January 1, 2020, was $23,787,000, and it then had Paid-in Capital in Excess of Par—Common Stock of $5,044,000. During 2020, the company’s net income was $4,693,000. A cash dividend of $0.60 a share was declared on May 5, 2020, and was paid June 30, 2020, and a 6% stock dividend was declared on November 30, 2020,...
Teal Corporation has outstanding 3,020,000 shares with common stock of a par value of $10 each....
Teal Corporation has outstanding 3,020,000 shares with common stock of a par value of $10 each. The balance in its Retained Earnings account at January 1, 2017, was $24,056,000, and it then had Paid-in Capital in Excess of Par—Common Stock of $4,960,000. During 2017, the company’s net income was $4,713,000. A cash dividend of $0.60 a share was declared on May 5, 2017, and was paid June 30, 2017, and a 6% stock dividend was declared on November 30, 2017,...
Teal Corporation has outstanding 3,020,000 shares with common stock of a par value of $10 each....
Teal Corporation has outstanding 3,020,000 shares with common stock of a par value of $10 each. The balance in its Retained Earnings account at January 1, 2017, was $24,056,000, and it then had Paid-in Capital in Excess of Par—Common Stock of $4,960,000. During 2017, the company’s net income was $4,713,000. A cash dividend of $0.60 a share was declared on May 5, 2017, and was paid June 30, 2017, and a 6% stock dividend was declared on November 30, 2017,...
Wilson Corporation issued and has outstanding 134,400 shares of $10 par-value common stock and 2,800 shares...
Wilson Corporation issued and has outstanding 134,400 shares of $10 par-value common stock and 2,800 shares of $70 par-value 20 percent preferred stock. The board of directors votes to distribute $4,200 as dividends in 2016, $7,000 in 2017, and $308,000 in 2018. Compute the total dividend and the dividend for each share paid to preferred stockholders and common stockholders each year under the following assumed situations.    Case A: The preferred stock is nonparticipating and noncumulative. (Round your per share...
On January 1, Hamblin Corporation had 120,000 shares of $10 par value common stock outstanding. On...
On January 1, Hamblin Corporation had 120,000 shares of $10 par value common stock outstanding. On March 17 the company declared a 10% stock dividend to stockholders of record on March 20. Market value of the stock was $13 per share on March 17. The entry to record the transaction of March 17 would include a Group of answer choices debit to Common Stock Dividends Distributable for $120,000. credit to Stock Dividends for $36,000. credit to Cash for $156,000. credit...
Problem #4 Pedroni Corporation has outstanding 3,000,000 shares of common stock with a par value of...
Problem #4 Pedroni Corporation has outstanding 3,000,000 shares of common stock with a par value of $10 ea. The balance in its Retained Earnings account at January 1, 2017, was $24,000,000, and it then had Paid-in-Capital in Excess of Par-Common Stock of $5,000,000. During 2017, the company’s net income was $4,700,000. A cash dividend of $.60 a share was declared on May 5, 2017, and was paid on June 30, 2017, and a 65 stock dividend was declared on November...
Sheridan Inc. has outstanding 14,500 shares of $10 par value common stock. On July
Sheridan Inc. has outstanding 14,500 shares of $10 par value common stock. On July 1, 2020, Sheridan reacquired 112 shares at $88 per share. On September 1, Sheridan reissued 65 shares at $94 per share. On November 1, Sheridan reissued 47 shares at $86 per share. Prepare Sheridan’s journal entries to record these transactions using the cost method.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT