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Journal Entries: Stock Dividends
Panza Corporation has 60,000 shares of its $1 par value common stock outstanding. Prepare journal entries to record the following transactions as they relate to the company's common stock:•July 17 Declared a 10 percent stock dividend on common stock to be distributed on August 10 to stockholders of record on July 31. Market value of the stock was $5 per share on this date.•31 Date of record.•Aug. 10 Distributed the stock dividend declared on July 17.•Sept. 1 Declared a $0.50 per share cash dividend on common stock to be paid on September 16 to stockholders of record on September 10.
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