Question

е е с ament CALCULATOR FULL SCREEN PRINTER VERSION BACK NE Exercise 14-03 a-b (Video) On January 1, 2020, Sandhill Corporation had $1,045,000 of common stock outstanding that was issued at par. It also had retained earnings of $744,500. The company issued 44,500 shares of common stock at par on July 1 and earned net income of $405,000 for the year. Journalize the declaration of a 16% stock dividend on December 10, 2020, for the following independent assumptions. (Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account ttles and enter for the amounts.) a. b. Par value is $10, and market price is $18. Par value is $5, and market price is $22. No. Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT

Answer 1

solution: Journal Entries NO. Account Titles and Escplanation A a. stock Dividends common Stock Dividends Distributable . .. paid in capital excess of par value (to record stock Dividena @ 161.) Debit(s) Credit (6) $429,120 $238.400 : $190, 720 5892,320 bi stock Dividends. common Stock Dividends Distributable paid in capital excess of par value (to record stock Dividend @ 18.1.) $202,800 5689,520

Explanation's a par value is $10 and nervet price is $18. If par value is $10 then $1,ou5,000 of common stock at pan equals 104,500 common. shares the $lious,ooo ho). Add the un,soo shares issued in July and you have 199,000 common shares outstanding, 16.1. Stock Dividend means . 23,840 (149,000416%) Shares will be issued. stock Divideno = 23,800X48 = $429,120 common stock Dividend Distributable = 23,840x90 = $238,400 paid in capital - equess of par value 23,800 x $1886) = $190, 120

b. Par value is $5 and market value is $22 . If par value is $5 then $1,045,000 of common Stock at par equals 209,000 common shares (ie the ones.com Add the ne,s00 shares issued in July and you have 253,500 shares outstanaing. 18% stock olvidend means no,560 (253,5004181) Shares will be issued. "Stock Dividend. = 40,560* $22 - $892,320 . . . common stock : Dividena - 40,560x85 Distributable = $202,800 paid in capital excess of. par valne - 40,560x1922-$5) .$689,520

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