A Corporation Had Stockholders' Equity on January 1 as Follows

Essay

A corporation had stockholders' equity on January 1 as follows: Common Stock,$5 par value,1,000,000 shares authorized,500,000 shares issued; Contributed Capital in Excess of Par Value,Common Stock,$1,000,000; Retained Earnings,$3,000,000.Prepare journal entries to record the following transactions:
$\begin{array}{|l|l|}\hline \text { Feb. 15 } & \begin{array}{l}\text { The board of directors declared a 5\% stock dividend to stockholders of } \\\text { record on March 1, to be issued on March 20. The stock was trading at \$6 } \\\text { per share prior to the dividend. }\end{array} \\\hline \text { Mar. 1 } & \text { The date of record. } \\\hline \text { Mar. 20 } & \text { Issued the stock dividend. }\\\hline\end{array}$