Description
Exercise 18-19 (Algo) Stock dividend [LO18-8]
The shareholders’ equity of Core Technologies Company on June 30, 2023, included the following:
Common stock, $1 par; authorized, 7 million shares;
issued and outstanding, 3 million shares $ 3,000,000
Paid-in capital—excess of par 12,000,000
Retained earnings 17,000,000
On April 1, 2024, 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 $30 on April 1, 2024, and $40 on June 1, 2024.
Required:
Prepare the journal entries to record the declaration and distribution of the stock dividend.
Note: If no entry is required for a transaction/event, select “No journal entry required” in the first account field.
