On January 1, Soft Corporation had 80,000 shares of $10 - 14085

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Thu 20 Sep, 2012
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Request Description

On January 1, Soft Corporation had 80,000 shares of $10 par value common stock outstanding. On June 17, the company declared a 15% stock dividend to stockholders of record on June 20. Market value of the stock was $15 on June 17. The entry to record the transaction of June 17 would include a

  • credit to Common Stock Dividends Distributable for $60,000.
  • debit to Stock Dividends for $180,000.
  • credit to Cash for $180,000.
  • credit to Common Stock Dividends Distributable for $180,000.
Solution Description

On January 1, Soft Corporation had 80,000 shares of $10 par value common stock outstanding. On June 17, the company d