nttpeBook Show Me How Print Item Entries for stock dividends Chart of Accounts o
ID: 2542644 • Letter: N
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nttpeBook Show Me How Print Item Entries for stock dividends Chart of Accounts ons Senior Life Co is an HMO for businesses in the Portland area. The following account balances appear on the balance sheet of Senior Life Co Common stock (800,000 shares authorized, 470,000 shares issued), $5 par, $2,350,000, Paid sin capital in excess of par-common stock. S 1,000,000, and Retanedeamngs, S33 045,000 The board of drectors declared a 1% stock dudend when the market price of the stock was $13 a share.Life Co reported no income or loss for the current year Required: A Joumalize the entries to record (1) the declaration of the dividend on December 1, capitalizing an amount equal to market value, and (2) the issuance of the stock certficates on December 31. Refer to the Chart of Accounts for exad wording of account tidles B Determine the following amounts before the stock dividend was declared(1) total paid-in captal, (2) total retaned eamings and (3) total stockholders equn Determine the folowng amounts after the stock dvidend was declared anddsng entres were recoded-the ente the year (1) total paid-in capital, (2) total retained eamings, and (3) total stockholders'equity CExplanation / Answer
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1. To record declaration of stock dividend Date Account Title Debit Credit Dec.1 Retained Earnings 104000 Stock Dividend Distributable 104000 (Declaration of 1% stock dividend for 800,000 shares @$13 per share) Dec.31 Stock Dividend Distributable 104000 Comon Stock 40000 Paid-in-capital in excess of par 64000 (Issuance of stock certificates for stock dividend)Related Questions
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