Question

Skysong, Inc. has 48,000 shares of $10 par value common stock outstanding. It declares a 11% stock dividend on December 1 when the market price per share is $17. The dividend shares are issued on December 31. Prepare the entries for the declaration and issuance of the stock dividend.

Answer 1

The entries is:Debit Stock Dividend $89,760;Credit Common Stock Dividend Distributable $52,800;Credit Paid in Capital in excess of Par- $36,960.

Declaration and issuance of the stock dividend

Dec 1        

Debit Stock Dividend    $89,760        

(48,000×11%×$17)

Credit Common Stock Dividend Distributable   $52,800

(48,000×11%×$10)

Credit Paid in Capital in excess of Par- $36,960

($89,760-$52,800)                              

Dec 31    

Debit Common Stock Dividend Distributable   $52,800

(48,000×11%×$10)

Credit Common Stock                                        $52,800

Therefore the entries is: Debit Stock Dividend $89,760 ;Credit Common Stock Dividend Distributable $52,800;Credit Paid in Capital in excess of Par- $36,960.

Learn more about Declaration and issuance of the stock dividend here:https://brainly.com/question/24243008

#SPJ1