Question

Stock Dividends and Stock Splits

The capital accounts for Alston Market on June 30, 20Y1, are as follows:

Shares of the company’s stock are selling at this time at $44. What entries would you make in each of the following cases?

a. A 10% stock dividend is declared and issued

I need help finding the Xs.

Please show how you got your answer. Thank you.

Declaration

Retained earnings

X

 

 

Stock dividends distributable

 

30000

 

paid in capital in excess of par

 

X

 

 

 

 

Common stock, $6 par, 50,000 shares issued and outstanding Paid-in Capital in excess of par Retained earnings. 300,000 600,000 1,840,000



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