Stock Dividends and Splits
1) Albatross Inc. has 10,000 shares of common stock outstanding. This year, the company's board of directors declared and paid a $2 per share dividends on common stock. What is the journal entry to record the payment of these dividends? (Choose the correct account title using Dividends Payable, Common Stock, Dividends Expense, Dividends Payable, and Retained Earnings).
2) Husky Corporation currently has 30,000 shares of common stock, and no preferred stock, outstanding. The stock, which has a par value of $1.00, was initially issued at $17 per share. Currently, the stock is trading at $24 per share. Husky has declared a 10% stock dividend. what is the Journal entry to record this stock dividend? Choose the correct account title using Additional Paid-in Capital - Common Stock, Cash, Common Stock, Dividends Payable, Retained Earnings, and Stock Dividends Expense).
For your review, attached is a fully formatted MS Excel spreadsheet containing the required journal entries for the issuance of dividends and stock spilts for the Albatross Inc. and Husky Corporation exercises.