Rolly Racing Motors, Inc., is authorized to issue 1,200,000 shares of $2 par common stock....
70.2K
Verified Solution
Link Copied!
Question
Accounting
Rolly Racing Motors, Inc., is authorized to issue 1,200,000 shares of $2 par common stock. The company issued 74,000 shares at $8 per share, and all 74,000 shares are outstanding. When the market price of common stock was $16 per share, Rolly Racing Motors, Inc., declared and distributed a 15 percent stock dividend. Later, Rolly Racing Motors, Inc., declared and paid a $0.30 per share cash dividend. Requirements 1. Journalize the declaration and distribution of the stock dividend. 2. Journalize the declaration and the payment of the cash dividend. Requirement 1. Journalize the declaration and distribution of the stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Cash Common stock Dividends payable Paid-in capital in excess of par-common Retained earnings nd. (Record debits first, then credits. Exclude explanations from any Requirement 2. journal entries.) Journalize the declaration of the cash dividend. Journal Entry Date Accounts Debit Credit Journalize the payment of the cash dividend. Journal Entry Date Accounts Debit Credit
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
