lake a Test Hannah Smon-Google Cheome Secure https/ ACC 102 Summer 2018 Test.asp
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lake a Test Hannah Smon-Google Cheome Secure https/ ACC 102 Summer 2018 Test.aspxètestld 1 yes Hannah Simon&1 7/8/18 8:16 PM Test: Exam 1 Chapters 13 & 14 Time Remaining: 02-35 45 Submit Test This Question: 1 pt 2 of 7 (2 complete) This Test: 7 pts possibl Painting Schools, Inc. is authoriced to issuae 200,000 shares of $2 par common stock The company issued 79.000 shares at $4 per share. When the maket price of common stock was S6 per share. Painting dedared and distrbuted a 10% stock dividend Later Painting declared and paid a $0 80 per share cash dividend Read the tsqukemints Requirement 2. Joumalize the declaration and paymont of the cash dividend (Recond debits first, then credits Select the explanation on the last line of the journal entry table ) Begin by journalizing the declaration of the cash dividend Date Accounts and Explanation Credit Now journalize the payment of the cash dividend Choose trom any list or enter any mumber te the input hels and then conue to the next questsion 5 9Explanation / Answer
Painting School Inc. Authorized Shares 200000 Par Value 2 Issued Shares 79000 Price Par Share 4 Market Price Per Share 6 Stock dividend 10% Cash dividend 0.8 Stock Dividend (79000*10%)= 7900 Market Price per share 6 Account Head & Explaination Debit Credit Stock dividend Retained Earnings(7900*$6) $ 47,400.00 To Common Stock dividend distributable(7900*$2) $ 15,800.00 To Paid in Capital excess of par(7900*$4) $ 31,600.00 (Being amount of stock dividend declared Common Stock dividend distributable $ 15,800.00 To Common Stock $ 15,800.00 (Being amount of stock dividend) Cash Dividend Retained Earnings(79000+7900)*.80 $ 69,520.00 To Dividend Payable-Common Stock $ 69,520.00 (Being amount of cash dividend declared) Dividend Payable-common Stock $ 69,520.00 To Cash $ 69,520.00 (Being amount of cash dividend Paid)
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