Question

BURCES CALCULATOR PRINTER VERSION «ВАСК NEXT Exercise 14-03 a-b (Video) ments oject 2 On January 1, 2020, Ivanhoe Corporation had $1,470,000 of common stock outstanding that was issued at par. It also had retained earnings of $741,500. The company issued 41,500 shares of common stock at par on July 1 and earned net income of $400,000 for the year. c(Part Journalize the declaration of a 15% 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.) Par value is $10, and market price is $18. a. sa-c mission) b. Par value is $5, and market price is $21. Aac mission) A(Video) No. Account Titles and Explanation Debit Credit a. tby Study Bebk1xls b. (AutoReca red).xlsx Onen Show Work Click if you would like to Show Work for this question: SHOW LIST OF ACCOUNTS VIDEO SIMILAR EXERCISE LINK TO TEXT x 30 MacBook Pro LURL

Answer 1

No.	Account Title & Explanation	Debit	Credit
A)	Stock Dividends	508,950
	Common Stock Dividends Distributable		282,750
	Paid-In Capital in Excess of Par-Common Stock		226,200
B)	Stock Dividends	1,056,825
	Common Stock Dividends Distributable		251,625
	Paid-In Capital in Excess of Par-Common Stock		805,200

A.

Common stock outstanding on Jan. 1, 2017 = $1,470,000

Par value of shares =$10

Therefore,Number of shares outstanding on Jan. 1, 2017 = $1,470,000 / 10 = 147,000

And,Number of shares issued on July 1, 2017 = 41,500

Thus,Total number of shares outstanding before stock dividends are declared = 147,000 + 41,500 = 188,500

Stock dividends declared = 15%

Therefore,Number of shares issued as stock dividends = 188,500 x 15% = 28,275 And,

Market price per share = $18

Thus,Total market value of stock dividends = 28,275 x $18 = $508,950 And,

Par value of 28,275 shares issued as stock dividend = 28,275 x $10 = $282,750

Thus,Paid-In Capital in Excess of Par-Common Stock = $508,950 - $282,750 = $226,200

B.

Common stock outstanding on Jan. 1, 2017 = $1,470,000

Par value of shares =$5

Therefore, Number of shares outstanding on Jan. 1, 2017 = $1,470,000 / 5 = 294,000 And,

Number of shares issued on July 1, 2017 = 41,500

Thus,Total number of shares outstanding before stock dividends are declared = 294,000 + 41,500 = 335,500

Stock dividends declared = 15%

Therefore,Number of shares issued as stock dividends = 335,500 x 15% = 50,325

And,Market price per share = $21

Thus,Total market value of stock dividends = 50,325 x $21 = $1,056,825

And,Par value of 50,325 shares issued as stock dividend = 50,325 x $5 = $251,625

Thus,Paid-In Capital in Excess of Par-Common Stock = $1,056,825 - $251,625 = $805,200