Stock dividend applicable to the outstanding shares

Reference no: EM13698229

On March 15, My Corp. BOD declared a 2 percent stock dividend applicable to the outstanding shares of its $10 par value common stock, of which 400,000 shares are authorized, 260,000 are issued, and 40,000 are held in the treasury. The stock dividend was distributed on April 15 to stockholders of record on April 1. On March, the market value of the common stock was $15 per share. On April 30, the BOD declared a $.50 per share cash dividend, for stockholders of record on May 1. On May 10, the My Corp paid the cash dividend to stockholders of record. No other stock transactions have occurred. Prepare the entries for the situation above.

Reference no: EM13698229

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