Exercise 11-14 On January 1, 2019, Frontier Corporation had $1,000,000 of common

Question

Exercise 11-14 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 $750,000. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $400,000 for the year. Journalize the declaration of a 15% stock dividend on December 10 2019, for the following independent ass tions Credit account tesa automaticall mente when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) Par value is $10, and market price is $18. (b) Par value is $5, and market price is $20. No. Account Titles and Explanation Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

a Retained earnings/Stock dividends 378000 =140000*15%*18           Stock dividend distributable 210000 =140000*15%*10           Paid in capital in excess of par-Common Stock 168000 b Retained earnings/Stock dividends 720000 =240000*15%*20           Stock dividend distributable 180000 =240000*15%*5           Paid in capital in excess of par-Common Stock 540000

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