On January 1 2016 Alpha Corporation had 200000 shares of com

On January 1, 2016, Alpha Corporation had 200,000 shares of common stock outstanding with a par value of $3 per share. On March 31, Alpha Corporation declared a 10% stock dividend when the market value was $10 per share. Use this information to prepare the General Journal entry (without explanation) for March 31. If no entry is required then write \"No Entry Required.\"

Solution

Date Account Titles and Explanation Debit Credit March 31, 2016 Retained Earnings [(200000 x 10%)shares x $10] 200000 Common Stock Dividend Distributable [(200000 x 10%) x $3] 60000 Paid-in capital in excess of par 140000