Question

The stockholders’ equity accounts of Monty Company have the following balances on December 31, 2020.

Common stock, $10 par, 326,000 shares issued and outstanding		$3,260,000
Paid-in capital in excess of par—common stock		1,110,000
Retained earnings		5,930,000

Shares of Monty Company stock are currently selling on the Midwest Stock Exchange at $36.

Prepare the appropriate journal entries for each of the following cases. (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.)

(a)		A stock dividend of 6% is (1) declared and (2) issued.
(b)		A stock dividend of 100% is (1) declared and (2) issued.
(c)		A 2-for-1 stock split is (1) declared and (2) issued.

No.	Account Titles and Explanation	Debit	Credit
(a) (1)	enter an account title for case A to record the declaration of stock dividends	enter a debit amount	enter a credit amount
	enter an account title for case A to record the declaration of stock dividends	enter a debit amount	enter a credit amount
	enter an account title for case A to record the declaration of stock dividends	enter a debit amount	enter a credit amount
(a) (2)	enter an account title for case A to record the issuance of stock dividends	enter a debit amount	enter a credit amount
	enter an account title for case A to record the issuance of stock dividends	enter a debit amount	enter a credit amount
(b) (1)	enter an account title for case B to record the declaration of stock dividends	enter a debit amount	enter a credit amount
	enter an account title for case B to record the declaration of stock dividends	enter a debit amount	enter a credit amount
(b) (2)	enter an account title for case B to record the issuance of stock dividends	enter a debit amount	enter a credit amount
	enter an account title for case B to record the issuance of stock dividends	enter a debit amount	enter a credit amount
(c) (1)	enter an account title for case C to record the declaration of the stock split	enter a debit amount	enter a credit amount
	enter an account title for case C to record the declaration of the stock split	enter a debit amount	enter a credit amount
(c) (2)	enter an account title for case C to record the issuance of the stock split	enter a debit amount	enter a credit amount
	enter an account title for case C to record the issuance of the stock split

Answer 1

Date	Particulars	Debit	Credit
a1	Retained Earnings(326,000*6%*36)	704,160
	Common Stock Dividend Distributable(326,000*6%*10)		195,600
	Paid-in Capital in Excess of Par-common		508,560
a2	Common Stock Dividend Distributable	195,600
	Common stock		195,600
b1	Retained Earnings(326,000*10)	3,260,000
	Common Stock Dividend Distributable		3,260,000
b2	Common Stock Dividend Distributable	3,260,000
	Common stock		3,260,000
c1	No entry required
c2	No entry required

I HOPE IT USEFUL TO YOU IF YOU HAVE ANY DOUBT PLZ COMMENT GIVE ME UP-THUMB. THANKS...