Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

تمرين 8

Journalizing cash and stock dividends
Painting Schools, Inc., is authorized to issue 200,000 shares of $1 par common stock. The company issued 77,000 shares at $3 per share. When the market price of common stock was $5 per share, Painting distributed a 10% stock dividend. Later, Painting declared and paid a $0.25 per share cash dividend.
Requirements
1. Journalize the distribution of the stock dividend.
2. Journalize both the declaration and the payment of the cash dividend.