On September 15,2016,the Scottie Company board of directors declared a 10% stock dividend on common shares.The shares are to be distributed on October 10,2016,to shareholders of record on October 1,2016.The market price per share on the date of declaration was $24 while the market price on the date of distribution was $26.The common stock has a par value of $5 per share and there were 1,000,000 shares outstanding prior to the declaration of the stock dividend.
Required:
Prepare any necessary journal entries to record the above transactions.

Question

Quizplus · Accepted Answer

The Answer of On September 15,2016,the Scottie Company board of directors declared a 10% stock dividend on common shares.The shares are to be distributed on October 10,2016,to shareholders of record on October 1,2016.The market price per share on the date of declaration was $24 while the market price on the date of distribution was $26.The common stock has a par value of $5 per share and there were 1,000,000 shares outstanding prior to the declaration of the stock dividend.
Required:
Prepare any necessary journal entries to record the above transactions.

On September 15,2016,the Scottie Company Board of Directors Declared a 10