*Practice Exercise 15-5 The stockholders\' equity accounts of Pearl Company have

Question

*Practice Exercise 15-5 The stockholders' equity accounts of Pearl Company have the following balances on December 31, 2017 Common stock, $3 par, 1,100,000 shares issued and outstanding Paid-in-capital in excess of par - common stock Retained earnings $3,300,000 4,400,000 8,635,000 Shares of Pearl Company stock are currently selling on the Midwest Stock Exchange at $26 Prepare the appropriate journal entries for each of the following independent cases Your answer is partially correct. Try again A stock dividend of 10% is declared and issued. (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.) Account Titles and Explanation Debit Credit etained Earnin ommon Stock Dividend Distributabl aid-in Capital in Excess of Par Common Stoc Common Stock Common Stoc Your answer is partially correct. Try again A stock dividend of 50% is declared and issued. (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.) Account Titles and Explanation Debit Credit etained Earnin ommon Stock Dividend Distributable ommon Stock Dividend Distributable ommon Stoc Your answer is correct. A 2-for-1 stock split is declared and issued. (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.) Account Titles and Explanation Debit Credit % o Ent o Ent

Explanation / Answer

Account titles & explanations Debit Credit Retained earnings (110,000*26) 2860000 Common stock dividend distributable(110000*3) 330000 paid in capital in excess of par-common stock 2530000 common stock dividend distributable 330,000 common stock. 330,000 Stock dividend of 50% which is large dividend 1,100,000*50% 550000 Account titles & explanations Debit Credit Retained earnings (550,000*3) 1650000 Common stock dividend distributable(110000*3) 1650000 common stock dividend distributable 1650000 comon stock. 1650000

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.