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.
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.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 15E
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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.
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