On January 1, 2019, Frontier Corporation had $1,000,000 of common stock outstanding that was issued at par

On January 1, 2019, Frontier Corporation had $1,000,000 of common stock outstanding that was issued at par: It also had retained earnings of $780,000. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $400,00 for the year.

Instruction

Journalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent assumptions.

Par value is $10, and market price is $18.
Par value is $5, and market price is $20.

Solution

Frontier Corporation
Journal Entries

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Instruction

Solution

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