The stockholders” equity section of Carson Company”s 2008 December 31, balance sheet follows:
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Stockholders” equity: |
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Paid-In Capital: |
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Common stock – $120 par value; authorized, |
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2,000 shares; issued and outstanding, 1,000 |
$120,000 |
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shares |
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Paid-in capital in excess of par value |
6,000 |
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Total paid-in capital |
$126,000 |
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Retained earnings |
48,000 |
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Total stockholders” equity |
$174,000 |
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On 2009 July 15, the board of directors declared a cash dividend of USD 12 per share, which was paid on 2009 August 1. On 2009 December 1, the board declared a stock dividend of 10 percent, and the shares were issued on 2009 December 15. Market value of the stock was USD 144 on December 1 and USD 168 on December 15. Prepare journal entries for these dividend transactions.