Practice Exercise 15-5 The stockholders\' equity accounts of Marin Company have

Question

Practice Exercise 15-5 The stockholders' equity accounts of Marin Company have the following balances on December 31, 2017. Common stock, $3 par, 1,000,000 shares issued and outstanding $3,000,000 Paid-in-capital in excess of par-common stock Retained earnings 5,300,000 8,022,000 Shares of Marin Company stock are currently selling on the Midwest Stock Exchange at $23. Prepare the appropriate journal entries for each of the following independent cases A stock dividend of 10% is declared and issued. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Debit Credit SHOW LIST OF AC COUNTS

Explanation / Answer

Stock Dividend of 10%: Retained Earnings a/c                        Dr 2300000    To Common Stock Dividend distributable a/c 300000    To Paid in capital in excess of par 2000000 [Being Dividend Declared] Common Stock Dividend Distributable a/c    Dr 300000    To Common Stock a/c 300000 [Being Dividend distributed] Stock Dividend of 50%: Retained Earnings a/c                        Dr 11500000    To Common Stock Dividend distributable a/c 1500000    To Paid in capital in excess of par 10000000 [Being Dividend Declared] Common Stock Dividend Distributable a/c    Dr 1500000    To Common Stock a/c 1500000 [Being Dividend distributed] 2 for 1 stock split: No entry is required

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