Question

Please write clear answers and do not hand writing.

Prepare a journal entries to record those transactions:

18. Stock dividends. The stockholders' equity section of Benton Corporation's balance sheet as of December 31, 2017 is as follows: Stockholders' Equity Common stock, $5 par value; authorized, 2,000,000 shares; issued, 600,000 shares $3,000,000 Paid-in capital in excess of par 850,000 Retained earnings 4.500.000 $8.350.000 The following events occurred during 2018: 1. Jan. 5 45,000 shares of authorized and unissued common stock were sold for $8 per share. 2. Jan. 16 Declared a cash dividend of 20 cents per share, payable February 15 to stock-holders of record on February 5. 3. Feb. 10 60,000 shares of authorized and unissued common stock were sold for $12 per share. 4. March 1 A 30% stock dividend was declared and issued. Fair value per share is currently $15. 5. April 1 A two-for-one split was carried out. The par value of the stock was to be reduced to $2.50 per share. Fair value on March 31 was $18 per share. 6. July 1 A 15% stock dividend was declared and issued. Fair value is currently $10 per share. 7. Aug. 1 A cash dividend of 20 cents per share was declared, payable September 1 to stockholders of record on August 21.

Answer 1

Date	Account title and explanation	Debit	Credit
Jan 5	Cash [45,000 x $8]	$360,000
	Common stock [45,000 x $5 par]		$225,000
	Paid-in capital in excess of par		$135,000
	[To record issuance of common stock for cash]
Jan 16	Cash dividends	$129,000
	Dividends payable [645,000 x $0.20]		$129,000
	[To record declaration of cash dividends]
Feb 10	Cash [60,000 x $12]	$720,000
	Common stock [60,000 x $5 par]		$300,000
	Paid-in capital in excess of par		$420,000
	[To record issuance of common stock for cash]
Feb 15	Dividends payable	$129,000
	Cash		$129,000
	[To record payment of cash dividends]
Mar 1	Stock dividend [211,500 x $5 par]	$1,057,500
	Common stock dividends payable		$1,057,500
	[To recod declaration of stock dividends]
April 1	No Entry for stock-split
July 1	Stock dividend [274,950 x $10]	$2,749,500
	Common stock dividends payable [1,410,000 x 15% x $2.5 par]		$687,375
	Paid in capital in excess of par		$2,062,125
	[To recod declaration of stock dividends]
Aug 1	Cash dividends	$421,590
	Dividends payable [2,107,950 x $0.20]		$421,590
	[To record cash dividends]
Sept 1	Dividends payable	$421,590
	Cash		$421,590
	[To record payment of dividends]

*March 1: Large stock dividend

**July 1: Small stock dividend

Calculations:

Jan 1 Beginning	600,000
Jan 5	45,000
Feb 10	60,000
Balance	705,000
Stock dividend [705,000 x 30%]	211,500
Balance	916,500
Stock-spit	2:1
Balance	1,833,000
Stock dividend [1833000 x 15%]	274,950
Balance	2,107,950