Everyone keeps answering this wrong, please for Gods sake help me. On December 3

Question

Everyone keeps answering this wrong, please for Gods sake help me.

On December 31, the stockholders' equity section of the balance sheet of R & B Corporation reflected the following Common stock (par $10; authorized 60,000 shares, outstanding 17,000 shares) Additional paid-in capital Retained earnings $170,000 11,200 67,000 On February 1 of the following year, a 12 percent stock dividend was issued. The market value of the stock on February 1 was $15 per share. Required: Prepare the journal entry to record (a) the small 12 percent stock dividend and, alternatively, (b) the large 100 percent stock dividend. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Record the issue of a 12 percent stock dividend on the/ 17,000 shares of stock outstanding with a market value of $15 per share. of stock 2 Record the issue of a 100 percent stock dividend on the 17,000 shares of stock outstanding with a par value of $10 per share.

Explanation / Answer

a)

12 Percent stock dividend has been given:

Stock to be distributed = 17000*12% = 2040 shares

Par value of stocks = 2040*10 = 20400

Additional paid in capital = 2040*5 = 10200

Total retained earnings required = 20400+10200 = 30600

Journal Entry:

Retained Earnings Dr 30600

Common Stock Cr 20400

Additional paid in capital Cr 10200

b)

Number of shares in 100% stock dividend = 17000*100% = 17000 shares

Par value of shares distributed = 17000*10 = 170000

Total retained earnings required = 170000

Journal Entry:

Retained Earnings Dr 170000

Common Stock Cr 170000

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