Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

On January 1, 2019, the stockholders' equity section of Green Mountains Corporation's balance sheet reported the following: Common stock, par $1, authorized 100,000 shares, issued 10,000 shares $10,000 Additional paid-in capital 150,000 Retained earnings 160,000 During 2019, the following selected transactions occurred (assume they occurred in the order given):
April 1 Issued a 10% stock dividend when the market price was $20. The stock dividend is considered small.
May 1 200 shares of treasury stock were purchased at $18 per share.
September 1 Announced 2 for 1 stock split
December 1 Declared and paid a cash dividend of $0.5 per share.
Required: Journalize all the transactions listed above for equity during 2019.

Sagot :

Tundexi

Answer:

Date     Account Titles and Explanation         Debit       Credit

Apr 1     Retained earnings                              $20,000

             [10000*10%]*$20

                    To common stock                                          $1,000

                     {1000*$1]

                     To additional Paid-in-capital                         $19,000

                      -Common stock [1000*(20-1)

              (To record stock dividends)

May 1    Cash                                                       $3,600

             (200*$18)

                   To treasury stock                                             $3,600

             (To record purchase of treasury stock)

Sept 1   No entry

Dec 1  Retained earnings                                   $10,800

          [(10000+1000-200)*2]*$0.5

                  To cash                                                               $10,800

           (To record declaration and payment of cash dividends)

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.