00:01
Hello, so this question is related to journal entry.
00:03
This question has two parts.
00:06
In first part, we have to pass entries related to the dividend income and in the second part entries are related to the investment.
00:18
So let's start with the first part.
00:52
First entry we are required to pass on 30th of june and the entry is retained earnings and the stock dividend distributable $60 ,000.
02:03
We have credited here 500 ,000 only because in this account we have to credit up to the par value and the remaining amount paid in excess for further on 15th of july.
03:01
We have to pass no entry as there is no events to be recorded.
03:13
In the last entry we are required to pass in this in this part is on 31st of july stock dividend distributable $500 ,000.
03:59
We have transferred up to the amount of par value to the common stock.
04:33
Now we have to start second part as i told you earlier as well second part is related to the investment.
04:45
So first entry we have to make on 1st of february and it will be treasury talk to cash because we have purchased investment for $225 ,000...