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Exercise 13-41

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The capital accounts for Alston Market on June 30, 2015 are as follows;Common Stock, $6 par, 50,000 shares issued and outstanding???????..$300,000;Paid-in Capital in excess of par??????????????????????????..600,000;Retained earnings????????????????????????????????...1,840,000;Shares of the company?s stock are selling at this time at $44. What entries would you make in each of the following cases?;(a) A 10% stock dividend is declared and issued.;(b) A 50% stock dividend is declared and issued.;(c) ? A 2-for-1 stock split is declared and issued.;Exercise 13-41;Enter the appropriate amounts/formulas in the blue-shaded cells, or select from the drop-down list.;(a) Journal entries - 10% stock dividend recorded at market value;Account Title Debit Credit;Supporting calculation;Outstanding shares;x Stock dividend declared (percentage);Additional shares;x New market value;Total market value of new shares;(b) Journal entries - 50% stock dividend recorded at par value;Account Title Debit Credit;Supporting calculation;Outstanding shares;x Stock dividend declared (percentage);Additional shares;x Par value;Total value of new shares at par;(c) Journal entries - a 2-for-1 stock split;Account Title Debit Credit;A memorandum entry would disclose the;decrease in par value from $6 to par value;and the increase in shares oustanding;from 50,000 to shares outstanding

 

Paper#79575 | Written in 18-Jul-2015

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