Please help***** Chapter 13 Homework***& Ex.13-10 Algo Show Me How Calculator En
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Question
Please help***** Chapter 13 Homework***& Ex.13-10 Algo
Show Me How Calculator Entries for stock dividends Chart of Accounts Journal Final Questions Instructions Advanced Life Co is an HMO for businesses in the Portland area. The following account balances appear on the Life Co. Common stock (900,000 shares authorized, 460,000 shares issued), 55 par, $2,300,000, Paid stock, $900,000, and Retained earnings, was $13 a share. Advanced Life Co. reported no income or loss for the current year. balance sheet of Advanced in capital in excess of par-common 533,595,000 The board of directors declared a 1% stock dividend when the market price of the stock Required A Journalize the entries to record (1) the declaration of the dividend on December 1, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates on December 31. Refer to the Chart of Accounts for exact wording of account bitles. B. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained eanings, and (3) total stockholders' equity C. Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year (1) total paid-in capital, (2) total retained eamings, and (3) total stockholders equity 8Explanation / Answer
Answer:
1
Date
Description
Debit $
Credit $
1-Dec
Retained earnings (460,000x1%*$13)
59800
Common stock dividend Distributable
(460,000*1%*$5)
23000
Paid in capital excess of par -common stock
(460,000*1%*$8)
36800
( to record the issue of 2% stock dividend)
31-Dec
Common stock dividend Distributable
23000
Common stock -$5 par
23000
( to record the issue common stock dividend)
2
Balance sheet (Partial)
1-Dec
paid in capital
Common stock-$5 par value , 900,000 authorized
and 460,000 issued and outstanding
2,300,000
Paid in capital excess of par -common stock
900,000
Total Paid in capital
3,200,000
retained earning
33595000
Total Stock holder's equity
36,795,000
3
Balance sheet (Partial)
1-Dec
paid in capital
Common stock-$5 par value , 900,000 authorized
and 464,600 issued and outstanding
2,323,000
Paid in capital excess of par -common stock
936,800
Total Paid in capital
3,259,800
retained earning
33535200
Total Stock holder's equity
36,795,000
Date
Description
Debit $
Credit $
1-Dec
Retained earnings (460,000x1%*$13)
59800
Common stock dividend Distributable
(460,000*1%*$5)
23000
Paid in capital excess of par -common stock
(460,000*1%*$8)
36800
( to record the issue of 2% stock dividend)
31-Dec
Common stock dividend Distributable
23000
Common stock -$5 par
23000
( to record the issue common stock dividend)