stock holders equity accounts

Question

On January 1, 2014, Everett Corporation had these stockholders’ equity accounts.

Common Stock ($10 par value, 80,800 shares issued and outstanding) $808,000
Paid-in Capital in Excess of Par Value 512,200
Retained Earnings 699,800

During the year, the following transactions occurred.

Jan. 15 Declared a $0.60 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb. 15 Paid the dividend declared in January.
Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $15 per share.
May 15 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2015.
Dec. 31 Determined that net income for the year was $418,700.






Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

I am having problems figure out these 3 questions.

Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $15 per share.
May 15 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2015

 

Can someone walk me through this?

Answer 1

The month in which the company declares a dividend payment(January), the following journal entry will be made:

1/31 Dr. Retained Earnings  48,480 =( 80,800 outstanding issued stocks X 0.60)

       Cr. Dividend payable account 48,480

2/15 Dr dividend payables 48,480

        Cr. cash (actual payment of dividend declared) 48,480

4/30 declared 10% stock dividend to stock holders on 4/15 80,800 x .10= 8,080 x 15= 121,200

        Dr. Retained earnings 121,200

        Cr Common stock par $10 (8080x10) = 80,080

        Cr Paid in capital                                  41,120

5/15 Issuance of the stock does not involve entries (no cash transaction)

12/31 declared cash dividend of 0.50 a share for stock holders of record dated 12/15

        Dr. Retained earnings  44,440

        Cr. Dividend payable        44,440