Check my work HiTech Manufacturing Company has 1,000,000 shares of S1 par valuel
ID: 2409229 • Letter: C
Question
Check my work HiTech Manufacturing Company has 1,000,000 shares of S1 par valuelcapital stock outstanding on January 1 The following equity transactions occurred during the current year apital stock outstanding on January 1. The Apr. 30 Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of stock was $3e per June 1 Declared a cash dividend of $e.59 per share. Duly 1 Paid the $0.59 cash dividend to stockholders. Aug. 1 Declared a 5 percent stock dividend. Market price of stock was $19 per share. Sept. 10 Issued shares resulting from the 5 percent stock dividend declared on August 1. ints share. eBook a. Prepare journal entries to record the above transactions. b. Compute the number of shares of capital stock outstanding at year-end. c. What is the par value per share of HiTech Manufacturing stock at the end of the year? d. Determine the effect of each of the following on total stockholders' equity, stock split, declaration and payment of Print a cash dividend, declaration and distribution of a stock dividend. References Complete this question by entering your answers in the tabs below. Required A Required B Required CRequired D Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, sel entry required" in the first account field.) ect "No journal View transaction list Journal entry worksheet 3 4 Record the stock split.Explanation / Answer
Journal entries: Date Acounts title and explanations Debit $ Credit $ 30-Apr Common Stock capital ($1) Dr. Common Stock capital ($ 0.50) (a memorndum entry to record the capital par value) 1-Jun Dividend Accounts Dr. 1180000 Dividend payable Account (2000,000*0.59) 1180000 1-Jul Dividend payable Account Dr. 1180000 Cash account 1180000 1-Aug Retained earning Account Dr. (2000,000*5%)*19 1,900,000 Common Stock distributable Account 50000 Paid in capital Account 1850000 10-Sep Common Stock Distributable Account Dr. 50000 Common Stock Capital Account 50000 Req b: Total number of shares outstanding: Beginning Number of shares 1,000,000 Add: Issued for stock split 1,000,000 Add: Issued for stoc dividend 100,000 Total number of shares outstanding: 2,100,000 Req c: Par value for shares outstanding Number of shares outstanding 2,100,000 Par value of share 0.5 Total Par value of shares outstanding 1050000 Req D: Effect on Stockholder's equity: For Stock Split No Change For Cash dividend Reduce For Stock Dividend No Change