22.Using the following information record the stock transactions for Cherry Co 9

Question

22.Using the following information  record the stock transactions for Cherry Co 9% preferred stock 900 shares issued $90.000,00 common stock - 364,000 shares issued at $1 par $364.000,00 paid in capital excess of par -preferred $1.437.000,00 paid in capital excess of par -common $2.574.000,00 retained earnings $9.735.000,00 treasury stock at cost, 4000 common share $(44.000,00) total stockholder's equity $14.156.000,00 On 2/14/15 Cherry declared a 5% stock dividend. The market price was $11 On 4/1/15 Cherry distributed the dividend on 5/1/15 Cherry had a stock split (make memo ) on 6/1/15 Cherry declared a 50% stock dividend Please make journal entries for the above 4 transactions. What is Cherry Co's stockholder's equity after the above entries are made? Show stockholder's Equity by each category (eg preferred stock, common stock, etc) Net income for the year was $1,500,000. 22.Using the following information  record the stock transactions for Cherry Co 9% preferred stock 900 shares issued $90.000,00 common stock - 364,000 shares issued at $1 par $364.000,00 paid in capital excess of par -preferred $1.437.000,00 paid in capital excess of par -common $2.574.000,00 retained earnings $9.735.000,00 treasury stock at cost, 4000 common share $(44.000,00) total stockholder's equity $14.156.000,00 On 2/14/15 Cherry declared a 5% stock dividend. The market price was $11 On 4/1/15 Cherry distributed the dividend on 5/1/15 Cherry had a stock split (make memo ) on 6/1/15 Cherry declared a 50% stock dividend Please make journal entries for the above 4 transactions. What is Cherry Co's stockholder's equity after the above entries are made? Show stockholder's Equity by each category (eg preferred stock, common stock, etc) Net income for the year was $1,500,000.

Explanation / Answer

For the transaction dated 5/1/15 with respect to stock split, the ratio of split is not given.

Similarly for the 50% stock split the market price is not provided.

The other two entries are given below.

Date Account Title Debit Credit 2/14/15 Dividend 200200 Stock dividend distributable 200200 (5% stock dividend declared on 364,000 common shares) 4/1/15 Stock dividend distributable 200200 Common Stock 18200 Paid-in-capital in excess of par - Common stock 182000 (Distribution of stock dividend) Stock dividend dated 2/14/15 Common stock sahes outstanding 364000 Stock dividend 5% Number of shares to be issued 18200 Market price $11 Value of the stock dividend 200200

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.