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Matt D CengageBrain-My Home × / i/CengageNow l Online te X. -> C fi Dcvg.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do ::Apps Welcome, Sign In a Welco me to the Ano YARCC E-mail P Pandora Internet Rac a Amazon.com-Online My Noran Clinic Hom tba PM MathLab Pearson Dcengage Learning-E The stockholders equity accounts at December 31, 2015 are provided below: 10. $4,000 Common Stock, $1 par, 20,000 shares authorized, 4,000 shares issued and outstanding Paid-in Capital in Excess of Par--Common Stock Retained Earnings 20,000 50,000 The market price of the stock was $8 per share at December 31, 2015 A) What journal entry will be required to record the distribution of a 20% stock dividend on December 31, 2015? For a compound transaction, if an amount box does not require an entry, leave it blank.) Dec. 31, 2815 E) What balance will be in the retained earnings accountimmediately following the stock dividend? C) Prepare the stockholders' equity section of the balance sheet alance Shect Stockholders Equity Section Deccmber 31, 2815 Total Capital Stock Retained Earnings Total Stockholders Equity tO Ask me anything 4/18/2016Explanation / Answer
A.
B. Balnce in Retained earning will be $43,600 ($50,000-$6400).
C.
Date Account Debit$ Credit$ 31.Dec,2015 Retained Earnings($8*800shares) Dr. 6400 Common stock, $1par value($1*800) Cr. 800 Paid in capital in excess of par common stock Cr. 5600 (Distribution of20% of stock divend= 4000*20%= 800 shares)