What is the journal entry to record this stock dividend? and STOCK PHOTO Cakes - 201004 - DSCF4343

What is the journal entry to record this stock dividend?

Husky Corporation currently has 20000 shares of common stock, and no preferred stock outstanding. the stock which has a par value of $ 2.00 was initially issued at $ 19 per share. Currently the stock is trading at $ 21 per share. Husky has declared a 5% stock dividend. Whats the journal entry to record this stock dividend?


please explain.


Stock best answer:

Answer by JKRB
20,000 shares outstanding. 5% stock dividend.
20,000 x 5% = 1,000 shares will be distributed
Dr Stock Dividends 21,000 (21 current price x 1,000 shares)
Cr Stock Dividends Distributable 2,000 (2 par value x 1,000 shares)
Cr Paid-In Capital in Excess of Par 19,000 (Difference between par and market value)

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