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1.The shareholders' equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 5 million shares; issued and outstanding, 1 million shares Paid-in capital-excess of par Retained earnings $1,000,000 4,000,000 8,000,000 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 $20 on April 1, 2021, and $30 on June 1, 2021. Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend. Complete this question by entering your answers in the tabs below. Stock General Dividend Journal Complete the below table to calculate the stock dividend. Stock Dividend Number of outstanding shares Stock dividend percentage (%) Number of shares to be issued % Value of stock dividend Stock Dividend General Journal >
View transaction list X > 1 Record the declaration of the stock dividend. 2 Record the distribution of the stock dividend. Credit Note : = journal entry has been entered Record entry View general journal Clear entry.
Calculation of Stock dividends
| Number of Shares Outstanding | 1,000,000 |
| Stock dividend in % | 10% |
| Number of shares to be issued | 100,000 |
| Market Value per share | $20 |
| Value of stock dividend | 2,000,000 |
Journal entry would be as follows.
| Date | account and. explanation. | Debit | Credit |
| Apr 1 | Stock dividend | 2,000,000 | |
| Common Stock Dividend distributable | 100,000 | ||
| Paid in capital in excess of par value-Common Stock | 1,900,000 | ||
| (To record stock dividend declared) | |||
| June 1 | Common Stock Dividend distributable | 100,000 | |
| Common Stock | 100,000 | ||
| (To record stock dividend distributed) |
