STOCK DIVIDENDS Martinez Company currently has 200,000 shares of $1 par common stock outstanding. On March 15, a 5% stock dividend was declared to shareholders of record on April 2, distributable on April 14. Market value of the common stock was estimated at $13 per share.1. Prepare journal entries for the declaration and distribution of the 5% common stock dividend.2. Assume Martinez Company declared a stock dividend of 30% rather than 5%.Prepare journal entries for the declaration and distribution of the 30% common stock dividend.
STOCK DIVIDENDS Martinez Company currently has 200,000 shares of $1 par common stock outstanding. On March 15, a 5% stock dividend was declared to shareholders of record on April 2, distributable on April 14. Market value of the common stock was estimated at $13 per share.1. Prepare journal entries for the declaration and distribution of the 5% common stock dividend.2. Assume Martinez Company declared a stock dividend of 30% rather than 5%.Prepare journal entries for the declaration and distribution of the 30% common stock dividend.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings
Section: Chapter Questions
Problem 4SEB: STOCK DIVIDENDS Martinez Company currently has 200,000 shares of 1 par common stock outstanding. On...
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STOCK DIVIDENDS Martinez Company currently has 200,000 shares of $1 par common stock outstanding. On March 15, a 5% stock dividend was declared to shareholders of record on April 2, distributable on April 14. Market value of the common stock was estimated at $13 per share.
1. Prepare
2. Assume Martinez Company declared a stock dividend of 30% rather than 5%.
Prepare journal entries for the declaration and distribution of the 30% common stock dividend.
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