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please answer all requirements, im very confused! thank you
IUTCWUI. Ullapiei IU HUITWork Score: 0.25 of 1 pt 4 of 5 (5 complete HW Score: 69.29%, 3.46 of Question Help * E10-33A (simil
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Answer #1
Part-1
Date Account Tittle L.F Debit Credit
Retained earnings (500,000*12%*20) $1,200,000
Common Stock Dividend Distributable (500,000*12%*.75) $45,000
Paid in Capital in excess of Par-Common stock $1,155,000
TO Record stock dividend
Common Stock Dividend Distributable $45,000
Common Stock $45,000
Part-2: Statement showing Stockholders Equity
Common Stock $0.75 par 2,400,000 shares authorized. 560000 Issued $420,000
Paid in Capital in excess of Par-Common stock
(1076267+1155000)
$2,231,267
Retained earnings (7155000-1200000) $5,955,000
Accumulated other comprehensive income -$175,000
Total stockholders equity $8,431,267
Part-3: Stockholder Equity unchanged by the stock Dividend because total Amount of Retained earning simultaneously increased as increase in paid in capital.
Part-4 : Maximum dvidend can not exceed the reatined earning by $5955000
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