Question

Exercise 14-03 a-b (Video) On January 1, 2020, Sunland Corporation had $1,445,000 of common stock outstanding that was issued at par. It also had retained earnings of $743,500. The company issued 35,500 shares of common stock at par on July 1 and earned net income of $395,000 for the year. Journalize the declaration of a 14% stock dividend on December 10, 2020, for the following independent assumptions. (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.) Rectangular Snip Par value is $10, and market price is $19. a. b. Par value is $5, and market price is $21. No. Account Titles and Explanation Debit Credit a. b.

Answer 1

Answer page or Required @ por value is $10 and mourket price is $19. Given ver common stock - $1445000. Retained earnings = $ 743,500 - share of common stock - 35,500 S net income = $395000 for year. 10-Dec-2020 stock dividend = ($1445000 + 355000) * 14%*$19 ($1800000 *14.1.*419 $4783000 common stock = ($2445000 + 355000)x14.4.* $10 ($1800000 )x14.4%$10. =$0520000 -> paid in capital in 'Excess of pay - common stock = $4488000 - $2520000 = $9968000 © pour value is $5, and market price is & o

10-Dec-2020 stock divident . page:02 ($1445000 + $ 355000)x14.4.x a1 = $ 1800000* 14.1.X.21 = $5292000 common stock = ($14455000+ 355000).X 1441. 5 = $1800000 x 144. * $ 5 =$1960000 -) paid in capital in excess of pan- common stock 1- $ 5292000 - $1060000 = $ 4032000 No. Account title and explanation Debit Credit a.stock dividend $4488000 common stocs dividend distributable $ 2530000 paid in capital in excess of para common stock _ $2.468000 6. stock dividend $5292000 common stock dividend distributable #186 0000 L-paidin capital inexces of par-common stock L _ 14403.2000. Son