Question

Exercise 15-14 The stockholders' equity accounts of Pearl Company have the following balances on December 31, 2020. Common stock, $10 par, 295,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings $2,950,000 1,280,000 5,950,000 Shares of Pearl Company stock are currently selling on the Midwest Stock Exchange at $39. Prepare the appropriate journal entries for each of the following cases. (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 o for the amounts.) (a) (b) (c) A stock dividend of 7% is (1) declared and (2) issued. A stock dividend of 100% is (1) declared and (2) issued. A 2-for-1 stock split is (1) declared and (2) issued. Debit Credit No. Account Titles and Explanation (a) (1) (a) (2) (b) (1) (c) (2) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO

Answer 1

		Account Titles and Explanation	Debit	Credit
(a)	1	Retained Earnings	805350		=295000*7%*39
		Common Stock Dividend Distributable		206500	=295000*7%*10
		Paid-in Capital in Excess of Par-Common Stock		598850
(a)	2	Common Stock Dividend Distributable	206500
		Common Stock		206500
(b)	1	Retained Earnings	2950000		=295000*100%*10
		Common Stock Dividend Distributable		2950000
(b)	2	Common Stock Dividend Distributable	2950000
		Common Stock		2950000
(c)	1	No entry	0
		No entry		0
(c)	2	No entry	0
		No entry		0