On January 1, 2020, Crane Corporation had $1,355,000 of common stock outstanding that was issued at par. It also had retained earnings of $746,000. The company issued 36,500 shares of common stock at par on July 1 and earned net income of $410,000 for the year. Journalize the declaration of a 15% stock dividend on December 10, 2017, for the following independent assumptions.
(a) Par value is $10, and market price is $18.
(b) Par value is $5, and market price is $20.
No. Account Title & Explanation Debit Credit
A) Stock Dividends
Common Stock Dividends Distributable
Paid-In Capital in Excess of Par-Common Stock
B) Stock Dividends
Common Stock Dividends Distributable
Paid-In Capital in Excess of Par-Common Stock