Carlyon Company listed the following equity items on December 31, 2012: During 2
ID: 2459226 • Letter: C
Question
Carlyon Company listed the following equity items on December 31, 2012:
During 2013, the following transactions occurred:
JE to be answered requires 3 answers
Oct 15 Entry To Be Answered: Debit Credit
Retained Earnings xxxxx
Common Stock To Be Distributed xxxxx
Additional Paid in Capital from Stock Dividend xxxxx
Explanation / Answer
Answer : OCT 15 Enrty will be
Account Name Dr Cr.
Retained Earnings 17600
Common Stock to be ditributed 8000
Additional Paid in capital from stock dividend 9600
Working Notes
No. of Common Stocks = value of Common stock/ value of One common stock
= 400000/10
= 40000 Stocks
Stock dividend = 40000*2%
= 800 stocks
Market price of 800 stocks = 800*22
= $ 17600