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eet Corporation has outstanding 479,000 shares of $10 par value common stock. The corporation declares a 100% stock dividend when the fair value of the stock is $69 per share.Prepare the journal entries for both the date of declaration and the date of distribution

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Explanation:

The journal entries are as follows:

1. Retained earnings Dr $3,305,100   (479,000 shares × $69 × 100%)

         To Paid-in capital in excess of par $2,826,100

          To Common stock $479,000               (479,000 shares × $10 × 100%)

(Being the date of declaration is recorded)

2. Common stock dividend distributable Dr $479,000

              To Dividend payable $479,000

(Being the date of distribution is recorded)