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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Entries for Stock Dividends
Red Market Corporation has 370,000 shares of $27 par common stock outstanding. On June 8, Red Market Corporation declared a 5% stock dividend to be issued August 12 to stockholders of record on July 13. The
market price of the stock was $51 per share on June 8.
Journalize the entries required on June 8, July 13, and August 12. If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
June 8
Stock Dividends
943,500
Stock Dividends Distributable
499,500
Paid-In Capital in Excess of Par-Common Stock
444,000
July 13
No Entry Required
No Entry Required
Aug. 12 Stock Dividends Distributable
499,500
Stock Dividends Distributable
499,500

Transcribed Image Text:Journal
Shaded cells have feedback.
Journalize the entry to record the transaction. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or
credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
How does grading work?
PAGE 10
JOURNAL
Score: 31/37
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
Apr. 5 Land
259,000.00
1
Common Stock
37,000.00
3
Paid in capital in excess of par - Common
222,000.00
Instructions
On April 5, Fenning Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 7,400 shares of $5 par common stock valued at $35 per share.
Required:
Journalize the entry to record the transaction. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not
use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit
entry when a credit amount is entered.
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