Exercise 10-69 (Algorithmic)
Stock Dividends
Penguin Company has the following information regarding itscommon stock:
Its common stock is $15 par, with 300,000 shares authorized,132,000 shares issued, and 130,600 shares outstanding.
On August 22, 2013, Penguin declared and paid a 15% stockdividend when the market price of the common stock was $28 pershare.
1. Prepare the journal entry to recorddeclaration and payment of this stock dividend. For a compoundtransaction, if an amount box does not require an entry, leave itblank.
2. Prepare the journal entry to recorddeclaration and payment assuming it was a 30% stock dividend.
