Chetola C shares were issued on June 30 of SS par value comm

Chetola C shares were issued on June 30. of SS par value common stock outstanding. It declared a 15% stock dividend on Jun 1 when the market price per share was $13. The Prepare the n entries for the declaration when the amount is entered. Do not Debit Credit une 30 Click if you would like to Show Work for this question earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 5 used save rouan K up

Solution

Date Account Titles and Explanation Debit Credit June 1 Retained Earning $       2,34,000 Stock Dividend Distributable $       2,34,000 (To record declaration of dividend) June 30 Stock Dividend Distributable $       2,34,000 Common Stock $           90,000 Additional Paid-in Capital $       1,44,000 (To record dividend payment) Working: Exiating number of shares           1,20,000 Stock Dividend 15% Number of shares in the form of stock dividend           1,20,000 x 15% =               18,000 Market Price of Shares $                   13 Total Amount of stock dividend               18,000 x $          13 = $       2,34,000 Common Stock               18,000 x $             5 = $           90,000 Additional Paid-in Capital               18,000 x $             8 = $       1,44,000