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3 January, 19:34

On January 1, 2019, Frederick Corporation had 200,000 shares of common stock outstanding with a par value of $5 per share. On March 31, Frederick Corporation authorized a 10% stock dividend when the market value was $18 per share.

Required:

1. Use this information to prepare the General Journal entry (without explanation) for March 31. If no entry is required then write "No Entry Required."

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  1. 3 January, 22:34
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    Dividend (debit) $100,000

    Shareholders for Dividends (credit) $100,000

    Explanation:

    Recognize a Statement of Changes in Equity Item - Dividend and also Recognize the Liability - Shareholders for Dividends that arises as a result of the authorization.

    Journal

    Dividend (debit) $100,000

    Shareholders for Dividends (credit) $100,000

    Dividend Calculation:

    Dividend Distribution = 200,000 shares * $5 per share * 10%

    = $100,000
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