Question

Homework: Homework - Chapter 10 Score: 0 of 2 pts < 3 of 4 (0 complete) ► E10-21A (similar to) The stockholders' equity for Castaway, Inc., on December 31, 2017, follows: (Click the icon to view the stockholders' equity on December 31, 2017.) On March 31, 2018, the market price of Castaway's common stock was $22 per share and the company distributed a 10 percent stock dividend. Read the requirements. Requirement 1. Journalize the distribution of the stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit i Data Table Mar 31 Stockholders' Equity Paid-in capital: Common stock, $1 par, 900,000 shares authorized, 80,000 issued and outstanding Paid-in capital in excess of par-common Total paid in capital i Requirements 80,000 720,000 1. Journalize the declaration and distribution of the stock dividend. 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend. 800,000 310,000 Retained earnings Total stockholders' equity 1,110,000 Print Done Print Done]

Answer 1

1) Journal entry

Date	account title and explanation	Debit	Credit
Mar 31	Stock dividend (80000*10%*22)	176000
	common Stock		8000
	Paid in Capital in excess of par value-Common Stock		168000

2) stockholder's equity

Paid in Capital
Common Stock	88000
Paid in capital in excess of par-Common	888000
Total paid in capital	976000
Retained earnings	134000
Total Stockholder's equity	1110000