Charter Schools,Inc.is authorized to issue 500,000 shares of $2 par common stock.The company issued 106,000 shares at $6 per share.When the market price of common stock was $10 per share,Charter declared and distributed a 10% stock dividend.Later,Charter declared and paid a $0.10 per share cash dividend.
Prepare the journal entries to record these transactions.Explanations are not required.

Question

Quizplus · Accepted Answer

The Answer of Charter Schools,Inc.is authorized to issue 500,000 shares of $2 par common stock.The company issued 106,000 shares at $6 per share.When the market price of common stock was $10 per share,Charter declared and distributed a 10% stock dividend.Later,Charter declared and paid a $0.10 per share cash dividend.
Prepare the journal entries to record these transactions.Explanations are not required.