Landess Corporation currently has 129,000 shares outstanding of $3 par value common stock
The stock was originally issued for $14 per share. On March 15, the board of directors declares a 13% stock dividend when the stock is selling for $22 per share. Which of the following is the correct journal entry to record this transaction? (Do not round intermediate calculations.)
A) debit Common Stock Dividend Distributable $50,310, debit Paid-In Capital in Excess of Par-Common for $318,630 and credit Retained Earnings $368,940
B) debit Stock Dividends $368,940 and credit Common Stock Dividend Distributable $368,940
C) debit Stock Dividends $368,940, credit Common Stock Dividend Distributable $50,310 and credit Paid-In Capital in Excess of Par-Common $318,630
D) debit Paid-In Capital in Excess of Par-Common $368,940 and credit Retained Earnings $368,940
C .C)
Stock Dividends = (129,000 x $22 x 13%) = 368,940
Common Stock Dividend Distributable = (129,000 x $3 x 13%) = 50,310
Paid-In Capital in Excess of Par—Common = (129,000 x ($22 - $3 ) x 13%) = 318,630
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