Entries for Stock Dividends stock, $24Mo stock, $24,000; and Retained earnings,
ID: 2410492 • Letter: E
Question
Entries for Stock Dividends stock, $24Mo stock, $24,000; and Retained earnings, s2,200,000. The board of directors de dared a 1% stock dividend when the market price ofthe stock was $33 a share. Senior Life Co. reported no income or loss for the current year. area. The following account of directors Senlor Life Co, is an HMO for businesses In the Portland a balances appear on the balance sheet of Senior Life Co.: Common stock (200,000 shares authorized; 8,00D shares Issued), $25 par, $200,000; Pald-In Capital In excess of par-common on nce of the declared a 1%.- If an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" from the dropdown. al. Journallze the entry to record the dedlaration of the dividend, capitalizing an amount equal to market value. a2. Journalize the entry to record the issuance of the stock certificates b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders equity Total pald-in capital Total retained earnings Total stockholders' equity c. Determine the following amounts after the stock dividend was declared and dosing entries were recorded at the end of the year: (4) total paid-n capital, (2) total retained eamings, and (3) total stockholders' equity. Total paid-in capita Total retalned earnings Total stockholders' equityExplanation / Answer
a1) Journal entry :
a2) Journal entry :
b) Total paid in capital = (200000+24000) = 224000
Total retained earnings = 2200000
Total Stockholder's equity = 2424000
c) Total paid in capital = 224000+26400 = 250400
Total retained earnings = 2200000-26400 = 2173600
Total Stockholder's equity = 2424000
Date accounts & explanation debit credit Stock dividend (8000*1%*33) 26400 Common Stock dividend distributable 20000 paid in capital in excess of par value 6400 (To record Stock dividend declared)Related Questions
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