Brief Exercise 1513 Grouper Corporation has outstanding 3030

Brief Exercise 15-13 Grouper Corporation has outstanding 303,000 shares of $10 par value common stock. The corporation declares a 10% stock dividend when the fair value of the stock is $71 per share. Prepare the journal entries for Grouper Corporation for both the date of declaration and the date of distribution. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Declaration Date Distribution Date

Solution

General Journal Debit Credit Declaration Date Retained Earnings(303,000 * $71 * 10%) $2,151,300 Paid-in Capital in Excess of Par $1,848,300 Common Stock Dividend Distributable(303,000 * $10 * 10%) $303,000 Distribution Date Common Stock Dividend Distributable $303,000 Common Stock $303,000