Journalize the above selected transactions completed during

Journalize the above selected transactions completed during the current fiscal year. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

Stock Dividends

Journalize each of the selected transactions completed during the current fiscal year. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

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Jan.	3	The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 400,000.
	22	Declared a dividend of $1.75 per share on the outstanding shares of common stock.
Feb.	8	Paid the dividend declared on January 22.
Sept.	1	Declared a 5% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $30.)
Oct.	1	Issued the certificates for the common stock dividend declared on September 1.

Solution

Date account titles & Explanations Debit Credit 3-Jan No Entry 22-Jan Cash Dividend 700000 Dividends payable 700000 (400,000*1.75) 8-Feb Dividends payable 700000 cash 700000 1-Sep Stock dividends (20000*30) 600000 Stock dividends distributable (20,000*20) 400000 paid in capital in excess of par-common stock 200000 ( shares 400,000*5%=20000 shares) 1-Oct Stock dividend distributable 400,000 common Stock 400,000