At the beginning of 2013,Helms Corporation had 34,000 shares of $10 par value common stock issued and outstanding.During January 2013,Helms declared and distributed a 10 percent stock dividend.The market value of Helms's stock was $24 throughout the month of January.The entry to be recorded for the declaration of stock dividend is:

Question

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The stock dividend is calculated as 10% of 34,000 shares, which is 3,400 shares. The market value of these shares is $24, so the total value is 3,400 x $24 = $81,600. The entry involves debiting Stock Dividends for $81,600, crediting Common Stock Distributable for the par value of the new shares (3,400 x $10 = $34,000), and crediting Additional Paid-in Capital for the excess ($81,600 - $34,000 = $47,600).

At the Beginning of 2013,Helms Corporation Had 34,000 Shares of $10