Prepare journal entry to record declaration and distribution

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Reference no: EM132674265

The shareholders' equity of Core Technologies Company on June 30, 2020, included the following:

Common stock, $1 par; authorized, 7 million shares; issued and outstanding, 3 million shares $3,000,000

Paid-in capital-excess of par 12,000,000

Retained earnings 10,000,000

On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies' common stock was $24 on April 1, 2021, and $34 on June 1, 2021.

Required:

Problem 1: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.

Number of outstanding shares:
Stock dividend percentage:
Number of shares to be issued:
Value of Stock Dividend

General Journal

Record the declaration of the stock dividend.; April 01, 2021
Record the distribution of the stock dividend. June 01, 2021

Reference no: EM132674265

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