The stockholders\' equity section of Jun Company\'s balance sheet as of April 1

Question

The stockholders' equity section of Jun Company's balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 7% stock dividend. The stock's per share market value on 2 is $12 (prior to the dividend). 9. April Common stock-$4 par value, 495,000 shares authorized 260,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,300,000 610,000 893,000 $2,803,000 a. (2 points) Prepare the journal entry to record the stock dividend. b. (2 points) Prepare the stockholders' equity section immediately after the stock dividend. Jun Company Stockholders' Equity April 2 (after stock dividend) Common Stock Paid-in capital in excess of par value, common stock Retained Earnings Total Stockholders Equity

Explanation / Answer

Number of shares issued= 260000*7%= 18200

Par value= 18200*4= 72800

Additional paid in capital= 18200*8= 145600

Entry:

Stockholders equity:

Account Debit Credit Retained earnings 218400 To Common stock 72800 To additional paid in capital 145600

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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