Question

The stockholders' equity for Blade, Inc., on December 31, 2017, follows !!! (Click the icon to view the stockholders' equilty on December 31, 2017.) On May 31, 2018, the market price of Blade's common stock was 513 per share and the company distributed a 20 percent stock dividend Read the requirements Requirement 1. Journalize the distribution of the stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Debit Credit May 31 Journal Entry Accounts Retained earnings Paid in capital in excess of palcommon Common stock 910000 840000 70000 Data Table -X - X Requirements 1. Journalize the declaration and distribution of the stock dividend. 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend. S Stockholders' Equity Pald-in capital Common stock, 51 par. 250,000 shares authorized, 70,000 issued and outstanding Pald in capital in excess of par common Total paid in capital Retained earnings Total stockholders' equity 70,000 630,000 Print Done 700,000 300,000 $ 1,000,000 Print Done

Answer 1

Stockholders' Equity Section
Common stock, $1 par, 250000 shares authorized , 84000 shares issued and outstanding
	84000
Paid in capital in excess of par – common 630000+14000*(13-1)	798000
Total paid in capital	882000
Retained Earnings (300,000-14,000*$13)	118000
Total Stockholders' Equity	$1,000,000

Number of Shares outstanding	70000
Stock Dividend Rate	20%
Stock Dividend Distributed = Number of shares outstanding x Stock Dividend Rate
Stock Dividend Distributed = 70000 * 20%	14000
Current Market price of stock = $13
Par value per share = $1