Alpine Energy Corporation has 242,000 shares of $30 par common stock outstanding

Question

Alpine Energy Corporation has 242,000 shares of $30 par common stock outstanding. On August 2, Alpine Energy declared a 2% stock dividend to be issued October 8 to stockholders of record on September 15. The market price of the stock was $55 per share on August 2. Journalize the entries required on August 2, September 15, and October 8. If no entry is required, simply skip to the next transaction.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

1

2

3

4

5

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

Explanation / Answer

Answer:-

The Journal Entries are as follows:-

Dr Common Stock Dividends Distributable

Cr Common Stock

145200

Date Particulars Debit ($) Credit ($) August 2 Dr Stock Dividends (242000×0.02×$55) 266200 Cr Common Stock Dividends Distributable (242000×$30×0.02) 145200 Cr Paid-in-capital in excess of par ($266200-$145200) 121000 September 15

Dr Common Stock Dividends Distributable

Cr Common Stock

145200

145200

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