Question

Helo l System Announcements ment CALCULATOR PRINTER VERSION « BACK Your answer is partially correct. Try again. On January 1, 2020, Wildhorse Corporation had $1,335,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,500. The company issued 45,000 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 titles are automatically indented 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.) Par value is $10, and market price is $19. Par value is $5, and market price is $22. b. No. Account Titles and Explanation Debit Credit Paid-in Capital in Excess of Par-Common Stock b Paid-in Capital in Excess of Par-Common Stock Click if you would like to Show Work for this question: een Show.Web e

Answer 1

Wildhorse Corporation				-
Journal entries
Date	Account Titles and Explanation	Debit	Credit		Calculation
a	Retained Earnings	542,640			28560*19
	Common Stock Dividend Distributable		285,600		28560*10
	Paid in Capital in Excess of Par-Common Stock		257,040
b	Retained Earnings	1,098,240			49920*22
	Common Stock Dividend Distributable		249,600		49920*5
	Paid in Capital in Excess of Par-Common Stock		848,640
	Workings
	16% Stock Dividend	Assumption a	Assumption b		Assumption a	Assumption b
	Opening Common Shares	133,500	267,000		1,335,000/10	1,335,000/5
	Shares Issued	45,000	45,000
	Subtotal	178,500	312,000
	16% Stock Dividend	28,560	49,920		178,500*16%	312,000*16%
	Number of Common Shares Issued & O/s	207,060	361,920