Question

Print 6. The stockholders' equity of Lakeside Occupational Therapy, Inc. on December 31, 2017, follows: (Click the icon to view the data.) ?(Click the icon to show additional information.) Read the requirements3. Requirement 1. Journalize the declaration and distribution of the stock dividend. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) First, journalize the declaration of the stock dividend. Date Accounts and Explanation Debit Credit Apr. 30 Now journalize the distribution of the stock dividend. Date Accounts and Explanation Debit Credit May 15

Answer 1

Answer is given below with working notes

400 Common stock-shares issued Stock dividend Stock dividend Market price Total market value 13% 52 (400*13%) $16 $832 (52*$26) Credit Debit $832 Date Account title and explanation April 30 2018 Retained Earnings To Common Stock dividend distributable To Paid in capital in excess of par - Common Stock (To record stock dividend) $52 52*$1 $780 52*($16-$1) May 15 2018 Common stock dividend distributable To Common Stock (to record issue of common stock) Balance Sheet (Partial) May 31, 2018 Stockholders' Equity Paid in capital Common stock $1 Par value, 1200 shares authorized , 452 stock issued and outstanding Paid in capital in excess of par- Common Stock Total paid in capital Retained Earnings Total Stock holders' equity $452 $2,380 $2,832 $119,168 ($120,000-$832) $122,000