On January 1, 2020, Ivanhoe Corporation had $1,010,000 of common stock outstanding that was issued at par. It also had retained earnings of $747,000. The company issued 37.500 shares of common stock at par on July 1 and earned net income of $405,000 for
the year.
Journalize the declaration of a 14% stock dividend on December 10, 2020, for the following independent assumptions. (Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the
account titles and enter O for the amounts.)
a.
b.
Par value is $10, and market price is $18.
Par value is $5, and market price is $21.
Debit
Credit
No. Account Titles and Explanation
a
Stock Dividends
Common Stock Dividends Distributable
Paid-in Capital in Excess of Par-Common Stock
b.
Stock Dividends
Common Stock Dividends Distributable
Paid-in Capital in Excess of Par-Common Stock