Reference no: EM133136207
Question - The stockholders' equity of Howell Company at July 31, 2018 is presented below:
Common stock, par value $20 (260,000 shares outstanding) $5,200,000
Paid-in capital in excess of par - common stock 1,110,000
Retained earnings 13,950,000
Total Stockholders' Equity $20,260,000
On August 1, 2018, the board of directors of Howell declared a 15% stock dividend on common stock, to be distributed on September 15th. The market price of Howell's common stock was $78 on August 1, 2018. Prepare the journal entries for Howell for both the date of declaration and the date of distribution.
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