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.com Print by: Ram Len ACCT 210 HYB A Fall 2017: Introduction to Financial Accou

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Question

.com Print by: Ram Len ACCT 210 HYB A Fall 2017: Introduction to Financial Accounting / Module 12 Brief Exercises, Questions, *Problem 11-4A On January 1, 2019, Concord Corporation had the following stockholders equity accounts Common Stock ($24 par value, 63,000 shares ssued and outstanding) $1,512.000 Paid-in Capital in Excess of Par-Common Stock Retained Earnings 204,000 648,000 During the year, the following transactions occurred. Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15. payable March Mar. 1 Paid the dividend declared in February APr. Announced a 2-for-1 stock split Prior to the soit. the market price per share was $ uly 1 Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31, On July 1, the market price of the stock was $14 per share. Issued the shares for the stock dividend. Declared a $0.60 per share dividend to stockholders of record on December 15, payable January 5, 2020 31 Dec. 1 31| Determined that net income for the year was $383,000 31 Journalize the trans Entry for the account rites and enter o for the amounta Recond journal entries in the order presented in the problem.)

Explanation / Answer

Journal

Common stock

Retained earnings

Paid in capital in excess of par value-Common

Common stock dividend distributable

Cash dividends

Stock dividends

Balance Sheet (Partial)

Date Account Name Debit Credit Feb 1 Cash dividend 63000 Dividend payable 63000 Mar 1 Dividend payable 63000 Cash 63000 Apr 1 Memo—two-for-one stock split increases number of shares to 126000 and reduces par value to $12 per share July 1 Stock dividend (126000 x 15% x $14) 264600 Common stock dividend distributable (126000 x 15% x $12) 226800 Paid in capital in excess of par 37800 July 31 Common stock dividend distributable 226800 Common stock 226800 Dec 1 Cash dividend (144900 x $0.60) 86940 Dividend payable 86940 Dec 31 Income summary 383000 Retained earnings 383000 Dec 31 Retained earnings 264600 Stock dividend 264600 Dec 31 Retained earnings 149940 Cash dividend 149940