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a Secure https//www.mathsl.com/Studen/p kaspshomeworkid 484897453questionld- 1affushed falseBcld 50298718acenterveneyes oseph Herma&1 718 8 36 AM ACCT 2301.WP Homework: Chapter 10 Homework Score: 0 of 2 pts E10-21A (similar to) The stocknolders equity tor Lakevile, Inc. on December 31 2015, tolows 43 of 4 (1 complete) Hw Score: 2.27% , 0 1801 8 Question Help (Click the icon to view the stockholidens equity on December 31, 2015 On Septomber 30.2016, the maket price of Lakeville's common stock was $12 per share and the company disrbuted a 15 percent stock aviend Requirement 1. Joumalize the distrbution of the slock dividend (Record debits trst, then credts. Exclude explanatons from any joumal entries Journal Entry Duta Table Sep 30 Stockholders' Equity Common stock, $1 par, 450,000 shanes authorized 100.000 1000,000 00.000 nsued and ouas aning Paid-n capital in excess of par-commorn Total paid in captal 100,000 1. Journalize the declaration and distribution of the stock dividend 2 Prepare the stockholders' equity section of the balance sheet ater the stock dividend Retained earnings Total stockholders equity 1,300 Print Done Print Done hoose from any list or enter any number in the input felds and then click Check Answer Check Answ Clear All O Type here to searchExplanation / Answer
Answers
A
No. of common stock shares
100,000.00
B
Stock Dividend rate
15%
C=A x B
No. of shares to be issued as stock dividend
15,000.00
D
Market Value of a share
$ 12.00
E=C x D
Total Stock Dividend distributable
$ 180,000.00
F = C x $1 par
Shares distributed at Par
$ 15,000.00
G = C x $(12 - 1)
Paid In Capital in Excess of Par - Common Stock
$ 165,000.00
Retained Earnings before Stock dividend
$ 290,000.00
Stock Dividends
$ (180,000.00)
Retained Earnings after stock dividends
$ 110,000.00
Date
Accounts
Debit
Credit
30-Sep
Dividends
$ 180,000.00
Dividend distributable
$ 180,000.00
(dividend declared)
30-Sep
Dividend distributable
$ 180,000.00
Common Stock
$ 15,000.00
Paid In Capital in Excess of Par - Common Stock
$ 165,000.00
(stock dividend distributed)
Stockholders' Equity
Paid In Capital:
Common Stock [$1 par, 450,000 shares authorised, 115,000 shares issued & Outstanding
$ 115,000.00
Paid In Capital in Excess of Par - Common Stock [1000000+ 165000]
$ 1,165,000.00
Total Paid In Capital
$ 1,280,000.00
Retained Earnings
$ 110,000.00
Total Stockholder's Equity
$ 1,390,000.00
A
No. of common stock shares
100,000.00
B
Stock Dividend rate
15%
C=A x B
No. of shares to be issued as stock dividend
15,000.00
D
Market Value of a share
$ 12.00
E=C x D
Total Stock Dividend distributable
$ 180,000.00
F = C x $1 par
Shares distributed at Par
$ 15,000.00
G = C x $(12 - 1)
Paid In Capital in Excess of Par - Common Stock
$ 165,000.00
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