Dynasty Corporation had stockholders' equity on January 1 as follows: Common Stock, $5 par value, 1,000,000 shares authorized, 400,000 shares issued; Paid-in Capital in Excess of Par Value, Common Stock, $800,000; Retained Earnings, $3,600,000. Prepare journal entries to record the following transactions: Feb. 15The board of directors declared a 5% stock dividend to stockholders of record on ?March 1, to be issued on March 20. The stock was trading at $7 per share prior to the dividend??Mar. 1The date of record.??Mar. 20Issued the stock dividend.
What will be an ideal response?
| Feb. 15 | Retained Earnings (400,000 * 5% * $7) … | 140,000 | ? |
| ? | Common Stock Dividend Distributable (400,000 * 5% * $5) … | ? | 100,000 |
| ? | Paid-in Capital in Excess of Par Value, Common Stock ……… | ? | 40,000 |
| ? | ? | ? | ? |
| Mar. 1 | No entry required. | ? | ? |
| ? | ? | ? | ? |
| Mar. 20 | Common Stock Dividend Distributable … | 100,000 | ? |
| ? | Common Stock ……………………… | ? | 100,000 |
| ? | ? | ? | ? |
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