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.

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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

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