Question

On January 1, 2017, Monty Corp. had these stockholders equity accounts. Common Stock ($10 par value, 75,000 shares issued and outstanding) $750,000 523,000 620,000 Paid-in Capital in Excess of Par Value Retained Earnings During the year, the following transactions occurred. Jan. 15 Declared a $0.60 cash dividend per share Feb. 15 Paid the dividend dedlared in January Apr. 15 Declared a May 15 Issued the shares for the stock dividend. Dec 1 Declared a $o.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2018. Dec. 31 Determined that net income for the year was $355,000. to stockholders of record on January 31, payable February 15. 10% stock dividend to stockholders of record on April 30, distributable May 15, On April 15, the market price of the stock was $14 per share. 回Your answer is correct. the transactions. (Indlude entries to dose net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No E 0 for the amounts) Date Account Titles and Explanation Debit Credit an. 15 Cash Dividends 45000 Dividends Payable Date Account Titles and Explanation Debit Credit Dividends Dividends Payable Feb. 15Dividends Payable Cash Apr. 15 10 Common Stock Dividends Distributable Paid-in Capital in Excess of Par Value-Common St May 15 Stock Dividends Distributable Common Stock Dec. 1 Dividends Payable Dec. 31 05 30000 Paid-in Capital in Excess of Par Value-Common St sacs o lay 15 Common Stock Dividends Distributable 75000 Common Stock 75000 Dec. 1 ·|Cash Dividends 41250 Dividends Payable 41250 Dec. 31 Income Summary 355000 Retained Earnings 355000 (To close net income) Dec. 31Retained Earnings Stock Dividends 105000 (To close stock dividends) Dec. 31 |Retained Earnings 86250 Cash Dividends 86250 To close cash dividends) ter the beginning balances and post the entries to the stockholders' equity T-accounts. (Post entries in the order of journal entries posted in the at have zero ending balance, the entry should be the balance date and zero for the amount. Common Stock Retained Earnings Paid-in Capital in Excess of Par Value Cash Dividends Paid-in Capital in Excess of Par Value Cash Dividends Common Stock Dividends Distributable Stock Dividends

Answer 1

Common Stock Beg. Bal May. 15 End. Bal Cash dividends $750,000 $75,000 $825,000 $45,000 Dec. 31 $41,250 $86,250 Jan. 15 Dec. 1 End. Bal Ş0 Paid-in Capital in excess of Par-Common Common Stock dividends distributable $75,000 Apr. 15 Ş0 $75,000 Beg. Bal $523,000 $30,000 $553,000 Mav. 15 End. Bal End. Bal Stock dividends $105,000 Dec, 31 Ş0 Retained Earnings $105,000 Beg. Bal $86,250 Dec. 31 Apr. 15 End. Bal Dec. 31 $620,000 $355,000 $783,750 Dec. 31 End. Bal