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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 3 years ago
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