Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 61

Journalizing Cash Dividends and Stock Dividends
Bogscraft Company has outstanding 60,000 shares of $ 10 par value common stock and 25,000 shares of $20 par value preferred stock (8 percent). On February 1, 2013, the board of directors voted in favor of an 8 percent cash dividend on the preferred stock. The cash dividends are to be paid on March 15, 2013. A 100 percent stock dividend on the common stock occurred on June 30, 2011, when the common stock price was $30 per share.
Required:
Prepare journal entries to record the events on ( a ) February 1, ( b ) March 15, and ( c ) June 30.