Question

dates On January 1, 2020, Oriole Corporation had the following stockholders' equity accounts. Support ins Common Stock ($26 par value. 50,000 shares issued and outstanding) $1,300,000 Paid-in Capital in Excess of Par-Common Stock 199,000 Retained Earnings 558,000 ver During the year, the following transactions occurred. Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. wat Paid the dividend declared in February Apr. Announced a 2-for-1 stock split. Prior to the split, the market price per share was $37. 1 July Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock 1 was $14 per share. 31 Issued the shares for the stock dividend. 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 $344,000.

Answer 1

Account Titles and Explanation Debit Credit Date Retained Earnings (50,000 X 2$) Dividends Payable |(To record dividends declared) Dividends Payable Feb. 1 $1,00,000 $1,00,000 Mar. 1 $1,00,000 Cash $1,00,000 |(To record declared dividends paid) No Entry required Apr. 1 Number of shares increased to 100,000 |(50,000 X 2) Retained Earnings ((100,000 X 15%) X $14) Common Stock Dividend Distributable (15,000 X $10) Paid-in Capital in Excess of Par Value (15,000 X $4) Jul. 1 $2,10,000 $1,50,000 $60,000 Common Stock Dividend Distributable (15,000 X $10) Jul. 31 $1,50,000 Common Stock $1,50,000 Retained Earnings (115,000 X $0.30) Dividends Payable $ 34,500 Dec. 1 $ 34,500 Income Summary Retained Earnings $3,44,000 Dec. 31 $3,44,000