Question

Problem 14-01A - (Part Level Submission) (Video) On January 1, 2020, Wildhorse Corporation had the following stockholders' equity Common Stock (124 per value, 63,000 shares issued and outstanding) $1,512,000 Pald-in Capital in Bocess of Par-Common Stock 206,000 Retained Earnings 636,000 During the year, the following transactions occurred. Feb. 1 Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1. Mar 1 Paid the dividend declared in February. Apr 1 Announced a 2-for-stock split. Prior to the spirit, the market price per share was $40. July 1 Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $326,500

Answer 1

Debit Credit Common stock Date Explanation Ref. Jan. 1 Balance Jul. 31 Balance 1,512,000 1,738,800 226,800 Common stock dividends distributable Date Explanation Ref. Debit Jul. 1 Balance Jul. 31 226,800 Credit 226,800 Balance 226,800 0 Paid in capital in excess of par-common stock Date Explanation Ref. Debit Credit Jan. 1 Balance Jul. 1 37,800 Balance 206,000 243,800 Debit Credit Retained earnings Date Explanation Ref. Jan. 1 Balance Dec. 31 Net income Dec. 31 Stock dividend Dec. 31 Cash dividend 326,500 Balance 636,000 962,500 697,900 528,430 264,600 169,470 Credit Cash dividend Date Explanation Ref. Feb. 1 Dec. 1 Dec. 31 Debit 126,000 43,470 Balance 126,000 169,470 169,470

Credit Stock dividend Date Explanation Ref. Jul. 1 Dec. 31 Debit 264,600 Balance 264,600 264,600