Answer:
Explanation:
The journal entries are shown below:
a. Stock Dividends A/c Dr $1,980,000 (2,200,000 shares × 5% × $18)
To Stock Dividends Distributable A/c $1,650,000 (2,200,000 shares × 5% × $15)
To Paid-In Capital in Excess of Par-Common Stock A/c $330,000
(2,200,000 shares × 5% × $3)
(Being the stock dividend is declared)
b. Stock Dividends Distributable A/c Dr $1,650,000
To Common Stock A/c $1,650,000
(Being issuance of the stock certificate is recorded)
