The Matt Tress Sofa Company has 11,000 shares of $2 par common stock outstanding. On August 22, 2019, a 3% stock dividend was declared to be distributed on September 30, 2019. The market value of the stock on August 22 was $21; the market value on September 30 was $18. What is the amount to be credited to the Paid-in-Capital in Excess of Par - Common Stock account on August 22?

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The amount to be credited to the Paid-in-Capital in Excess of Par - Common Stock account is calculated by first determining the number of shares to be distributed as the stock dividend, then calculating the excess of the market value over the par value for those shares. With a 3% stock dividend on 11,000 shares, 330 shares (11,000 * 0.03) are to be distributed. The market value on the declaration date (August 22) is $21, so the total market value of the dividend shares is 330 * $21 = $6,930. The par value of these shares is 330 * $2 = $660. The amount to be credited to the Paid-in-Capital in Excess of Par account is the difference between the total market value and the total par value, which is $6,930 - $660 = $6,270.

The Matt Tress Sofa Company Has 11,000 Shares of $2