Question

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 10% stock divident. Assume the declaration occurs April 2 and the distribution occurs on May 2.

2) What is Jun's total stockholders equity after the distribution of the shares on May 2?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
2-Apr Retained Earnings 400000 =200000*10%*20
        Common Stock dividend distributable 100000 =200000*10%*5
        Paid in capital in excess of par value, common stock 300000
2-May Common Stock dividend distributable 100000
        Common Stock 100000
2
Total stockholders equity will be same after the distribution = $2433000
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QS 11-7 Accounting for small stock dividend LO P2 The stockholders’ equity section of Jun Company’s...
QS 11-7 Accounting for small stock dividend LO P2 The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 15% stock dividend. The stock’s per share market value on April 2 is $15 (prior to the dividend). Common stock—$5 par value, 435,000 shares authorized, 230,000 shares issued and outstanding $ 1,150,000 Paid-in capital in excess of par value, common stock 550,000 Retained earnings 863,000 Total stockholders' equity $...
QS 11-7 Accounting for small stock dividend LO P2 The stockholders’ equity section of Jun Company’s...
QS 11-7 Accounting for small stock dividend LO P2 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, 375,000 shares authorized, 200,000 shares issued and outstanding $ 1,000,000 Paid-in capital in excess of par value, common stock 600,000 Retained earnings 833,000 Total stockholders' equity $...
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 of TVX Company at the beginning of the day on February 5 follows....
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows. Common stock—$10 par value, 150,000 shares authorized, 60,000 shares issued and outstanding $ 600,000 Paid-in capital in excess of par value, common stock 425,000 Retained earnings 550,000 Total stockholders’ equity $ 1,575,000 On February 5, the directors declare a 20% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $40 per share on February 5...
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows....
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows. Common stock—$25 par value, 150,000 shares authorized, 59,000 shares issued and outstanding $ 1,475,000 Paid-in capital in excess of par value, common stock 426,000 Retained earnings 553,000 Total stockholders’ equity $ 2,454,000 On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $36 per share on February 5...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 1, is as follows: Stockholders’ Equity Paid-in capital Preferred stock, ? par value, 5% cumulative, 140,000 shares authorized, 44,000 shares issued and outstanding $ 440,000 Common stock, $20 stated value, 190,000 shares authorized, 44,000 shares issued and outstanding 880,000 Paid-in capital in excess of par—Preferred 34,000 Paid-in capital in excess of stated value—Common 66,000 Total paid-in capital 1,420,000 Retained earnings 290,000 Total stockholders’ equity...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 1, is as follows: Stockholders’ Equity Paid-in capital Preferred stock, ? par value, 5% cumulative, 140,000 shares authorized, 44,000 shares issued and outstanding $ 440,000 Common stock, $20 stated value, 190,000 shares authorized, 44,000 shares issued and outstanding 880,000 Paid-in capital in excess of par—Preferred 34,000 Paid-in capital in excess of stated value—Common 66,000 Total paid-in capital 1,420,000 Retained earnings 290,000 Total stockholders’ equity...
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows....
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows. Common stock—$25 par value, 150,000 shares authorized, 56,000 shares issued and outstanding $ 1,400,000 Paid-in capital in excess of par value, common stock 425,000 Retained earnings 546,000 Total stockholders’ equity $ 2,371,000 On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $36 per share on February 5...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT