Williamson Company declared and distributed a 10% stock dividend when it had 800,000 shares of $1 par value common stock outstanding.The market price per share of common stock was $60 per share when the dividend was declared.The journal entry to record the stock dividend would include a credit to:

Question

Quizplus · Accepted Answer

Debit Retained Earnings 800,000 × 10% × $60 = $1,200,000;Credit Common Stock 200,000 × 10% × $1 par = $20,000;Credit Paid-in Capital in Excess of Par-Common $1,200,000 - $20,000 = $1,180,000

Williamson Company Declared and Distributed a 10% Stock Dividend When