Journalize the transactions Januar 1 2017 Hluc Spruce Corp. had $1,100 00d of co
ID: 2590777 • Letter: J
Question
Journalize the transactions
Januar 1 2017 Hluc Spruce Corp. had $1,100 00d of common stock outstanding that w s issued at par and retained earnings of S 19.000. The campany issued 30 D00 shares of common stock at par on July 1 and earned net incomc of S 54,000 for thc v credit account titles are automatical y i dented when amount s entered. Do not ndent ma ual select Journalize the declaration o a 15% stock dividend on December 10, 2017, or the following two independent assumptions Entry" lor the account titles and enter 0 for the amounts. If no entry s requ e No (a) Par value is $10 and market price is $18. b) Par value is 5 and market price is $3 No. Account Titles and Explanation Debit Credit TEA) tib)Explanation / Answer
(a) Stock Dividends (21,000* X $18) ........................ 378,000
Common Stock Dividends Distributable
(21,000 X $10) ............................................ 210,000
Paid-in Capital in Excess of Par Value
(21,000 X $8) .............................................. 168,000
*[($1,100,000 ÷ $10) + 30,000] X 15%
(b) Stock Dividends (37,500* X $8) .......................... 300,000
Common Stock Dividends Distributable
(37,500 X $5) .............................................. 187,500
Paid-in Capital in Excess of Par Value
(37,500 X $3) .............................................. 112,500
*[($1,100,000 ÷ $5) + 30,000] X 15%
(a)
Jan.
10
Cash (66,500 X $4) .............................
266,000
Common Stock (66,500 X $1) ....
66,500
Paid-in Capital in Excess of
Stated Value—Common
Stock (66,500 X $3)..................
199,500
Mar.
1
Cash (1,130 X $56) ...........................
63,280
Preferred Stock (1,130 X $53) ....
59,890
Paid-in Capital in Excess of
Par Value—Preferred Stock
(1,130 X $3) ............................
3,390
May
1
Cash (111,500 X $5) ...........................
557,500
Common Stock (111,500 X $1) ..
111,500
Paid-in Capital in Excess of
Stated Value—Common
Stock (111,500 X $4)................
446,000
Sept.
1
Cash (4,300 X $7)...............................
30,100
Common Stock (4,300 X $1) ......
4,300
Paid-in Capital in Excess of
Stated Value—Common
Stock (4,300 X $6)....................
25,800
Nov.
1
Cash (2,300 X $58) .............................
133,400
Preferred Stock (2,300 X $53) ....
121,900
Paid-in Capital in Excess of
Par Value—Preferred Stock
(2,300 X $5) ..............................
11,500
(a)
Jan.
10
Cash (66,500 X $4) .............................
266,000
Common Stock (66,500 X $1) ....
66,500
Paid-in Capital in Excess of
Stated Value—Common
Stock (66,500 X $3)..................
199,500
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