Chapter 6
Corporations: Contributed Capital and Dividends
297
b) Write the journal entry to record the declaration and subsequent payout of the dividends.
Fickle Feline uses the cash dividends method to record dividends.
Date
Account Title and Explanation
Debit
Credit
AP-9B (
6
)
Silang Vayman Ltd is a travel agency that specializes in tours to the Philippines and Russia.
It has 75,000 common shares issued. On March 15, 2016, the organization declared a 45%
stock dividend. Prepare the journal entry to record the declaration and distribution (on April
1, 2016) of the dividend. The market price on the date of declaration was $25 per share. The
company uses the stock dividends method to account for stock dividends.
Date
Account Title and Explanation
Debit
Credit
