Journalizing cash and stock dividends Self-Defense Schools, Inc. is authorized to issue 200,000 shares of $2 par common stock. The company issued 73,000 shares at $5 per share. When the market price of common stock was $7 per share, Self-Defense Schools declared and distributed a 14% stock dividend Later, Self-Defense Schools declared and paid a $0.70 per share cash dividend. Requirements Journalize the declaration and the distribution of the stock dividend. Journalize the declaration and the payment of the cash dividend.

Question

Journalizing cash and stock dividends

Self-Defense Schools, Inc. is authorized to issue 200,000 shares of $2 par common stock. The company issued 73,000 shares at $5 per share. When the market price of common stock was $7 per share, Self-Defense Schools declared and distributed a 14% stock dividend Later, Self-Defense Schools declared and paid a $0.70 per share cash dividend.

Requirements

  1. Journalize the declaration and the distribution of the stock dividend.
  2. Journalize the declaration and the payment of the cash dividend.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Balanced scorecard. Following is a random-order listing of perspectives, strategic objectives, and p...

A: Balanced Scorecard: Balanced scorecard is a commonly used strategic performance measurement tool. Th...

Q: State how each of the following items is reflected in the financial statements. a.    Change from FI...

A: Hi, thankk you for the question. Since we only answer up to 3 sub-parts, we'll answer the first 3. P...

Q: Explain the importance of a contract in the revenue recognitionprocess.

A: Click to see the answer

Q: Companies occasionally sell more than one security for a single price. How is the issue price alloca...

A: Issue price:Issue price is the price at which the securities such as common stock, preferred stocks,...

Q: Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum, and alumina. The fol...

A: Explain the answer for the given requirements.

Q: The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following acc...

A: a.

Q: The net income for Fallon Company for 2020 was $320,000. During 2020, depreciation on plant assets w...

A: Operating activities: Operating activities refer to the normal activities of a company to carry out ...

Q: Sometimes a temporary difference will produce future deductible amounts. Explain what is meant by fu...

A: The future deductible amount caused by temporary difference means that the taxable income can be dec...

Q: What are the accounting problems related to the presentation of interim data?

A: Interim data is the data which covers a period less than the fiscal year.  The data is issued during...

Q: An example of intraperiod income tax allocation is a. Reporting an extraordinary item in the income ...

A: Intra-period tax allocation: An intra-period tax allocation is an allocation of tax expense between ...

Q: What quantitative materiality tests are applied to determine whether a segment is significant enough...

A: Explain the quantitative materiality tests that are applied to determine whether a segment is signif...

Q: FASB ASC 715–60: Compensation–Retirement Benefits–Defined Benefit Plans–Other Postretirement (previo...

A: Temporary DifferenceTemporary difference refers to the difference of one income recognized by the ta...

Q: Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Departme...

A: Journal Entries

Q: Make or buy, unknown level of volume. (A. Atkinson, adapted) Denver Engineering manufactures small e...

A: Opportunity Cost:Opportunity cost is total of potential income and other benefits that are lost due ...

Q: For accounting purposes, we classify accounting changes into three categories. What are they? Provid...

A: Accounting changes: Accounting changes are the alternations made to the accounting methods, accounti...

Q: One of the longest debates in accounting history is the issue of deferred taxes. The controversy beg...

A: Temporary DifferenceTemporary difference refers to the difference of one income recognized by the ta...

Q: On January 1, 2016, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated Janua...

A: Bond is an instrument which represent the amount of loan raised by the borrower from the lender. It ...

Q: On October 1, 2016, Nicklaus Corporation receives permission to replace its $1 par value common stoc...

A: Requirement 1:Prepare journal entries to record the declaration and payment of these stock and cash ...

Q: At the end of the current period, Agler Inc. had aprojected benefit obligation of $400,000 and pensi...

A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the benefi...

Q: In 2016, the internal auditors of Development Technologies, Inc., discovered that (a) 2015 accrued w...

A: Click to see the answer

Q: Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) owne...

A: Click to see the answer

Q: The following is an excerpt from a disclosure note of Johnson & Johnson: 6. Fair Value Measureme...

A: Derivatives: Derivatives are some financial instruments which are meant for managing risk and safegu...

Q: Help with G and H

A: (g) Calculate the balance in the Finished Goods Inventory account at the end of the month.

Q: Target operating income, value-added costs, service company. Calvert Associates prepares architectur...

A: Requirement 1:Calculate the operating income; value added cost and total non-value added cost.

Q: Strategy, balanced scorecard, service company. Compton Associates is an architectural firm that has ...

A: a. The Compton Associates follow the Cost leadership strategy. The products are sold at a low cost t...

Q: State how each of the following items is reflected in thefinancial statements.(a) Change from FIFO t...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Distinguish between ratio analysis and percentage analysis relative to the interpretation of financi...

A: Financial statement: A record of financial activities and financial position of the company or an in...

Q: Presently, the profession requires that earnings per share be disclosed on the face of the income st...

A: Financial statement: A record of financial activities and financial position of the company or an in...

Q: Arabica Highland Coffee Company roasts and packs coffee beans. The process begins by placing coffee ...

A: 1. Calculate the equivalents units for production of direct materials and conversion costs for the m...

Q: What is a private pension plan? How does a contributorypension plan differ from a noncontributory pl...

A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the benefi...

Q: Distinguish between counterbalancing and noncounterbalancing errors. Give an example of each.

A: Difference:Counterbalancing errors are the type of errors that cancels out or equalize other error w...

Q: Target prices, target costs, activity-based costing. Snappy Tiles is a small distributor of marble t...

A: 1.Calculate S's operating income for 2016.

Q: What are the major advantages of notes to the financial statements? What types of items are usually ...

A: The major advantages of notes to the financial statements are as follows:Additional information rela...

Q: Partial-productivity measurement. Gable Company manufactures wallets from fabric. In 2016, Gable mad...

A: Pa

Q: On July 1, year 2, a company decided to adopt IFRS. The company’s first IFRS reporting period is as ...

A: IFRS:  International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to brin...

Q: What are the three relevant dates involving cash dividends? Describe each.

A: A dividend is a return received by shareholders of the company. The relevant dates involving cash di...

Q: On 01-01-15, G purchased a machine for $10,000,000. Installation costs incurred and paid for on 01-0...

A: Click to see the answer

Q: Journalizing a small stock dividend Element Water Sports has 13,000 shares of $1 par value common st...

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in...

Q: Balanced scorecard. Pineway Electric manufactures electric motors. It competes and plans to grow by ...

A:  

Q: How does the Model Business Corporation Act affect the way corporations operate?

A: Corporation: A business concern where there is a separate legal entity, and are owned by shareholder...

Q: If it is discovered that an extraordinary repair in the previous year was incorrectly debited to rep...

A: Click to see the answer

Q: Describing corporation characteristics Due to recent beef recalls, Southwest Steakhouse is consideri...

A: 1.In this case since B wish to protect his personal assets in the event of liquidation, the advantag...

Q: Mayfair Department Stores, Inc., operates over 30 retail stores in the Pacific Northwest. Prior to 2...

A: 1. Change in inventory methods:Change in inventory method is said to be the difference between the p...

Q: Jackson Health Foods has 8,000 shares of $2 par common stock outstanding, which were issued at $15 p...

A: Depreciation: Depreciation expense is a non-cash expense, which is recorded on the income statement ...

Q: Elliott Corp. failed to record accrued salaries for 2016,$2,000; 2017, $2,100; and 2018, $3,900. Wha...

A: Accounting error:Accounting errors can be defined as omission of the fundamental accounting principl...