On January 1, 2014, Wilkens Corporation had $1,429,000 of common stock outstandi

Question

On January 1, 2014, Wilkens Corporation had $1,429,000 of common stock outstanding that was issued at par and retained earnings of $844,900. The company issued 30,900 shares of common stock at par on July 1 and earned net income of $485,100 for the year. Journalize the declaration of a 15% stock dividend on December 10, 2014, for the following two independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Par value is $10 and market price is $13. Par value is $5 and market price is $9.

Explanation / Answer

Debit Credit a Dividends $ 214,350.00 To dividends payable $ 214,350.00 Calculated as 15%*$10*142900=$214,350 b Dividends $ 214,350.00 To dividends payable $ 214,350.00 Calculated as 15%*$5*285800=$214,350

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