Question

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

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

Homework Answers

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...

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