Journal Entries of Open Door Corporation

Question

Open Door, Corp. has outstanding 15,000 shares of $150 par value common stock.

Prepare the entries to record:

1. The declaration of a cash dividend of $2.50 per share
2. The declaration of a stock dividend of 10 percent at a time when the market value per share is $185.
3. The declaration of a stock dividend of 40 percent at a time when the market value per share is $195.

Summary

This question belongs to accounting and discusses about preparation of journal entries for transactions of a company.

Total word count: 39