Ask Question
1 January, 05:55

Sheffield Corp. has 285,000 shares of $8 par value common stock outstanding. It declares a 13% 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 distribution of the stock dividend. (Record journal entries in the order presented in the problem. 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.)

+1
Answers (1)
  1. 1 January, 06:37
    0
    285,000 common stock outstanding with a $8 par value

    it declares 13% stock dividend

    market price at $16

    since the stock dividend is considered small (less than 20%), we use the market price to record it

    December 1, 202x stock dividends are declared (37,050 stocks)

    Dr Retained earnings 592,800

    Cr Common stock dividends distributable 296,400

    Cr Additional paid in capital 296,400

    December 31, 202x, distribution of stock dividends

    Dr Common stock dividends distributable 296,400

    Cr Common stock 296,400
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Sheffield Corp. has 285,000 shares of $8 par value common stock outstanding. It declares a 13% stock dividend on December 1 when the market ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers