The Norman Corporation's stockholders' equity accounts have the following balances as of January 1, 2014:
Norman engaged in the following dividend transactions during 2014: March 1: Declared a 50% stock dividend on the common stock, distributable on April 10. The market price per share for the common stock was $35 on March 1.
April 10: Distributed the stock dividend declared on March 1.
June 30: Declared a 10% stock dividend on the common stock, distributable on August 5. The market price for the common stock was $38 per share on June 30.
August 5: Distributed the stock dividend declared on June 30.
December 1: A $.60 per share cash dividend was declared on the common stock, payable on January 20, 2015.
Required:
Prepare the entries to record the dividend transactions for 2014. (Do not record the cash dividend payment in 2015.)

Question

The Norman Corporation's stockholders' equity accounts have the following balances as of January 1, 2014:  
Norman engaged in the following dividend transactions during 2014: March 1:	Declared a 50% stock dividend on the common stock, distributable on April 10. The market price per share for the common stock was $35 on March 1. 
April 10:	Distributed the stock dividend declared on March 1.	 
June 30:	Declared a 10% stock dividend on the common stock, distributable on August 5. The market price for the common stock was $38 per share on June 30.
August 5:	Distributed the stock dividend declared on June 30.
December 1:	A $.60 per share cash dividend was declared on the common stock, payable on January 20, 2015.
Required:
Prepare the entries to record the dividend transactions for 2014. (Do not record the cash dividend payment in 2015.)

Quizplus · Accepted Answer

The Answer of The Norman Corporation's stockholders' equity accounts have the following balances as of January 1, 2014:  
Norman engaged in the following dividend transactions during 2014: March 1:	Declared a 50% stock dividend on the common stock, distributable on April 10. The market price per share for the common stock was $35 on March 1. 
April 10:	Distributed the stock dividend declared on March 1.	 
June 30:	Declared a 10% stock dividend on the common stock, distributable on August 5. The market price for the common stock was $38 per share on June 30.
August 5:	Distributed the stock dividend declared on June 30.
December 1:	A $.60 per share cash dividend was declared on the common stock, payable on January 20, 2015.
Required:
Prepare the entries to record the dividend transactions for 2014. (Do not record the cash dividend payment in 2015.)

The Norman Corporation's Stockholders' Equity Accounts Have the Following Balances