Exercise 15-14 The stockholders’ equity accounts of Skysong Company have the fol
ID: 2390730 • Letter: E
Question
Exercise 15-14
The stockholders’ equity accounts of Skysong Company have the following balances on December 31, 2017.
Shares of Skysong Company stock are currently selling on the Midwest Stock Exchange at $35.
Prepare the appropriate journal entries for each of the following cases. (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 0 for the amounts.)
No.
Account Titles and Explanation
Debit
Credit
Common stock, $10 par, 298,000 shares issued and outstanding $2,980,000 Paid-in capital in excess of par—common stock 1,280,000 Retained earnings 5,840,000Explanation / Answer
Ans- Journal Entries
Date Particulars Debit Credit
a-1- Retained Earning 834,400
Common Stock Dividend Distributable 238,400
Paid in capital in Excess of Par common( B/F) 596000
2- Common Stock Dividend Distributable 238,400
C Common Stock 238,400
b- 1- Retained Earnings 2,980,000
Common Stock Dividend Distributable 2,980,000
2- Common Stock Dividend Distributable 2,980,000
C Common Stock 2,980,000
c-1- No entry
2- No entry
Explanation- Retained Earning for entry a-1- share issued 298,000* selling price on Midwest Stock Exchange $35=$10,430,000
as stock dividend 8% so 8%of 10,430,000= $834,400
Common Stock Dividend Distribution 8% of $2,980,000= 238,400
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