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5 November, 23:10

Nash Corporation has outstanding 343,000 shares of $10 par value common stock. The corporation declares a 10% stock dividend when the fair value of the stock is $64 per share. Prepare the journal entries for Nash Corporation for both the date of declaration and the date of distribution. (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 0 for the amounts.)

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  1. 6 November, 00:26
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    Date of Declaration

    Debit Retained earnings $2,195,200

    Credit Paid in capital in Excess of par $1,852,200

    Common Stock Dividend Distributable $343,000

    Date of Distribution

    Debit Common Stock dividend Distributable $343,000

    Credit Common Stock #343,000

    Explanation:

    The question is prepare the journal entries for Nash Corporation

    a) for date of declaration

    b) Date of Distribution

    a) date of declaration

    Description Debit Credit

    Declaration Date

    Retained Earnings 343,000x 0.1 x$64 2,195,200

    Paid in Capital in Excess of Par 1,852,200

    Common Stock Dividend distributable (343,000 x10%x$10) 343,000

    Being the declaration of dividend

    b) date of Distribution

    Description Debit Credit

    Distribution Date

    Common Stock Dividend distributable 343,000

    Common Stock 343,000

    Being the Distribution of declared of dividend
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