Prepare the journal entry for the payment of the stock

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Question - Cash and Stock Dividends

Debra Corporation has 78,000 shares of $1 par value common stock outstanding. The company has $650,000 of retained earnings. At year-end, the company declares a cash dividend of $2.00 per share and a eight percent stock dividend. The market price of the stock at the declaration date is $78 per share. Three weeks later, the company pays the dividends.

a. Prepare the journal entry for the declaration of the cash dividend.

b. Prepare the journal entry for the declaration of the stock dividend.

c. Prepare the journal entry for the payment of the cash dividend.

d. Prepare the journal entry for the payment of the stock dividend.

Reference no: EM131960593

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