Self- Defense Schools, Inc. is authorized to issue 200,000 shares of $5 par common stock. The company issued
80,000 shares at $6 per share. When the market price of common stock was $8 per share, Self- Defense declared and distributed a 15% stock dividend. Later, Self-Defense declared and paid a $0.20 per share cash dividend.
1) Journalize the declaration and distribution of the stock dividend.
2) Journalize the declaration and payment of the cash dividend.
Joutbal entries On declaration of stock dividend Retained earnings. dr. 96,000 To common stock distributable 60,000 To paid... View the full answer