Question

View Policies Current Attempt in Progress The stockholders' equity accounts of Ayayai Company have the following balances on December 31, 2020. Common stock, $10 par, 288,000 shares issued and outstanding $2,880,000 Paid-in capital in excess of par-common stock 1,180,000 Retained earnings 5,750,000 Shares of Ayayal Company stock are currently selling on the Midwest Stock Exchange at $38. 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 for the amounts.) (a) A stock dividend of 7% is (1) declared and (2) issued. (b) A stock dividend of 100% is (1) declared and (2) issued. (c) A2-for-1 stock split is (1) declared and (2) issued. ht hlo Ite No. Account Titles and Explanation Debit bck CI (a) (1) Fir Hivi sa rec

Answer 1

	stock dividend =		288000*7%
			20160	shares
No.	Account Titles and Explanations					Debit	Credit
a)1)	Stock dividend		(20160*38)			766080
	Stock dividend distributable						201600
	Paid-in - capital in excess of par - common stock						564480
a)2)	Stock dividend distributable					201,600
	Common Stock						201,600
b)1)	Stock dividend		(288000*10)			2880000
	stock dividend distributable						2880000
	Stock dividend distributable					2880000
	Common stock						2880000
c)	No Entry