The post-closing trial balance of Storey Corporation at December 31, 2014, conta

Question

The post-closing trial balance of Storey Corporation at December 31, 2014, contains the following stockholders’ equity accounts.

A review of the accounting records reveals the following.

I needed to reproduce the retained earnings account for 2014 and I just need help with Dec. 31 Stock dividends. I was able to figure out everything else but I am drawing a blank.

Preferred Stock (14,900 shares issued) $745,000 Common Stock (240,900 shares issued) 3,372,600 Paid-in Capital in Excess of Par—Preferred Stock 250,100 Paid-in Capital in Excess of Par—Common Stock 384,100 Common Stock Dividends Distributable 337,260 Retained Earnings 855,220

Explanation / Answer

Attaching below the stock dividend calculation and entry details

Date Reatined Earning Account Jan 1.2014 Opening balance 2014            1,117,500 Sep 1. Prior period depreciation adjustment                (66,290) Oct 1. Cash Dividend declared             (337,260) Dec 31. Stock Dividend declared             (409,530) Dec 31. Net Income from P/L 2014                550,800 Ending Balance Retained earning                855,220 Sock dividend calculation Dec 31. No of Outstanding 240900 10 % stock dividend = 24090 shares issue Market price = 17 per share Total debit to retained earning = 17*24090 =$409,530 The credit goes to Stock dividend distributable @14/ share                337,260 And additional paid in capital =3*24090=                  72,270

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