Question

The stockholders’ equity section of the balance sheet for the Ace Company appeared as follows before...

The stockholders’ equity section of the balance sheet for the Ace Company appeared as follows before their recent stock dividend:

Common Stock, $5 par, 100,000 shares issued and outstanding $ 500,000

Paid in Capital in Excess of Par $ 750,000

Retained Earnings $ 800,000

Total Stockholders’ Equity $ 2,050,000

The company declared a 10% stock dividend when the market price per share was $12. In the space provided, write in the amounts of each of the components of the stockholders’ equity section, after the stock dividend was distributed.

Common Stock¬ $__________________

Paid in Capital in Excess of Par $__________________

Retained Earnings $__________________

Homework Answers

Answer #1
Journal entry for stock dividend
Retained earnings 120000 (100000*10%*12)
              Common stock 50000 (100000*10%*5)
               Paid in capita in excess of par 70000 (100000*10%*7)
Common stock [email protected] 550000 (500000+50000)
Paid in capital in excess of par 820000 (750000+70000)
Retained earnings 680000 (800000-120000)
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The stockholders' equity section of the December 31, 2009, balance sheet for Interiors, Inc. before its...
The stockholders' equity section of the December 31, 2009, balance sheet for Interiors, Inc. before its recent stock dividend was as follows:Common Stock, $5 par, 100,000 shares issued and outstanding$ 500,000Paid-in Capital in Excess of Par--CommonStock100,000Retained Earnings725,000Total Stockholders' Equity$1,325,000Interiors declared a 10% stock dividend when the market price per share was $8.00. After the stock dividend, the components of Interior's stockholders' equity section were: Common Stock Paid-in Capital Retained Earningsa.$580,000 $100,000 $645,000b.$550,000 $100,000 $805,000c.$550,000 $130,000 $645,000d.$580,000 $130,000 $805,000
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 74,000 shares issued and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 320,000 Retained earnings 720,000 Total stockholders’ equity $ 1,780,000 Required: (1) Prepare the updated stockholders' equity section after the distribution is made. (2) Compute the number of...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 78,000 shares issued and outstanding $ 780,000 Paid-in capital in excess of par value, common stock 340,000 Retained earnings 730,000 Total stockholders’ equity $ 1,850,000 Required: (1) Prepare the updated stockholders' equity section after the distribution is made. (2) Compute the number of...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 74,000 shares issued and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 320,000 Retained earnings 720,000 Total stockholders’ equity $ 1,780,000 Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. Required: (1) Prepare the...
The stockholders' equity section of Piper Corporation's balance sheet at December 31, 2016, appears below: Stockholders'...
The stockholders' equity section of Piper Corporation's balance sheet at December 31, 2016, appears below: Stockholders' equity    Paid-in capital       Common stock, $10 par value, 400,000 shares authorized;       300,000 issued and outstanding $3,000,000    Paid-in capital in excess of par 1,200,000          Total paid-in capital 4,200,000    Retained earnings 900,000          Total stockholders' equity $5,100,000 During 2017, the following stock transactions occurred: Jan. 18 Issued 80,000 shares of common stock at $23 per share. Aug. 20 Purchased 20,000 shares of Piper Corporation's common stock at...
Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger...
Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $796,500 Paid-In Capital from Sale of Treasury Stock 32,700 Paid-In Capital in Excess of Par—Common Stock 21,240 Retained Earnings 1,250,000 Treasury Stock 16,435 Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are...
Using the following accounts and balances, prepare the stockholders' equity section of the balance sheet. Fifty...
Using the following accounts and balances, prepare the stockholders' equity section of the balance sheet. Fifty thousand shares of common stock are authorized, and 2,000 shares have been reacquired. Common Stock, $40 par $1,320,000 Paid-In Capital in Excess of Par 204,040 Paid-In Capital from Sale of Treasury Stock 6,040 Retained Earnings 125,000 Treasury Stock 4,540 Stockholders' Equity Contributed capital: Common stock, $40 par (50,000 shares authorized, 33,000 issued $ Additional paid-in capital Total contributed capital $ Retained earnings Total $...
Stockholders' Equity Section of Balance Sheet Premium Imports Inc. retails racing products for BMWs, Porsches, and...
Stockholders' Equity Section of Balance Sheet Premium Imports Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Premium Imports Inc. on November 30, the end of the current year: Common Stock, $10 par $600,000 Paid-In Capital in Excess of Par-Common Stock 180,000 Paid-In Capital in Excess of Par-Preferred Stock 57,900 Paid-In Capital from Sale of Treasury Stock-Common 45,200 Preferred 4% Stock, $50 par 965,000 Retained Earnings 2,254,700 Treasury Stock-Common...
The stockholders' equity section of Wildhorse Co. balance sheet at December 31 is presented here: WILDHORSE...
The stockholders' equity section of Wildhorse Co. balance sheet at December 31 is presented here: WILDHORSE CO. Balance Sheet (partial) Stockholders' equity   Paid-in capital     Preferred stock, cumulative, 11,000 shares authorized,       6,000 shares issued and outstanding $600,000     Common stock, no par, 750,000 shares authorized,       600,000 shares issued 6,000,000       Total paid-in capital 6,600,000   Retained earnings 1,450,000   Total paid-in capital and retained earnings 8,050,000   Less: Treasury stock (5,000 common shares) 41,000 Total stockholders' equity $8,009,000 From a review of the stockholders' equity section,...
The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April...
The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock’s per share market value on April 2 is $20 (prior to the dividend). Common stock $5 par value, 375000 shares authorized, 200000 shares issued and outstandings. $1000000 Paid in capital in excess of par value, common stock. 600000 Retained earnings. 833000 Total stockholders equity. $2433000 1) Journalize the declaration and distribution of the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT