Challenger Corporation currently has 120,000 shares outstanding of $1 par value common stock
The stock was originally issued for $12 per share. On March 15, the board of directors declares and distributes a 10% stock dividend when the stock is selling for $16 per share. Prepare the journal entry to record the stock dividend.
What will be an ideal response
Stock Dividend 192,000
Common Stock 12,000
Paid-In Capital in Excess of Par—Common 180,000 .(120,000 x 10%) x $16 = $192,000
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