Richman Corporation has 120,000 shares of $5 par value common stock outstanding. It declared a 15% stock dividend on June 1 when the market price per share was $12. The shares were issued on June 30. Instructions 1- Prepare the necessary entries for the declaration, record and payment of the stock dividend. 2- List the three dates that are related to dividends and discuss them briefly. Solution - declaration entry Accounts Debit Credit Solution - 2- List the three dates that are related to dividends and discuss them briefly. Stock dividend (120000*15%*12) 216000 1- Common Stock dividend distributable 90000 2- Paid in capital in excess of par-Common Stock 126000 3- Solution - record entry Accounts Debit Credit Solution - payment entry Accounts Debit Credit

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