On January 1, 2017, Concord Co
January 18th, 2023
On January 1, 2017, Concord Corporation had these stockholders’equity accounts.
| Common Stock ($ 10 par value, 75,500 shares issuedand outstanding) | $ 755,000 | |
| Paid-in Capital in Excess of Par Value | 484,500 | |
| Retained Earnings | 685,000 |
During the year, the following transactions occurred.
| Jan. | 15 | Declared a $ 0.40 cash dividend per share to stockholders ofrecord on January 31, payable February 15. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Feb. | 15 | Paid the dividend declared in January. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apr. | 15 | Declared a 10% stock dividend to stockholders ofrecord on April 30, distributable May 15. On April 15, the marketprice of the stock was $ 14 per share. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| May | 15 | Issued the shares for the stock dividend. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec. | 1 | Declared a $ 0.60 per share cash dividend to stockholders ofrecord on December 15, payable January 10, 2018. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec. | 31 |
Determined that net income for the year was $ 413,000. Enter the beginning balances and post the entries to thestockholders’ equity T-accounts. (Post entries in theorder of journal entries posted in the previous part. For accountsthat have zero ending balance, the entry should be the balance dateand zero for the amount.)
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Answer:
| JournalEntries | |||
| Date | Account Title and explanation | Debit | Credit |
| Jan, 15 2017 | Retained Earning (75,500 Shares X $ 0.40) | $ 30,200 | |
| To DividendPayable | $ 30,200 | ||
| (To record the cash dividend declaration) | |||
| Dividend Payable | $ 30,200 | ||
| Feb, 15 2017 | To Cash | $ 30,200 | |
| (To record the payment of cash dividend) | |||
| Retained Earning (7,550 Shares X $ 15) | $ 1,05,700 | ||
| Apr, 15 2017 | To Common StockDividend Declaration (7550 Shares X $ 10) | $ 75,500 | |
| To Paid in Capitalin Excess of Par | $ 30,200 | ||
| (To record the stock dividend declaration) | |||
| Note: | |||
| 10% of Stock = 75,500 Shares X 10 % =7,550 shares | |||
| Stock Dividend value = 7,550 shares X $ 14 (market price) = $105,700 | |||
| May, 15 2017 | Common Stock Dividend Declaration | $ 75,500 | |
| To Common SharesCapital | $ 75,500 | ||
| (Issue stock for stock dividend) | |||
| Dec, 01 2017 | Retained Earning (83,050 Shares X $ 0.60) | $ 49,830 | |
| To DividendPayable | $ 49,830 | ||
| (To record the cash dividend declaration) | |||
| Dividend Payable | $ 49,830 | ||
| Jan, 10, 2018 | To Cash | $ 49,830 | |
| (To record the payment of cash dividend) | |||
| CALCULATION OF THE NUMBER OF SHARES OUTSTANDING AS ON DEC,01 | |||
| Opening Balance of number of Shares | 75500 | Shares | |
| Add: Stock Dividend 10% | 7550 | Shares | |
| Outstanding shares as on Dec, 01 | 83050 | Shares | |
| Dividend declared per shares | $ 0.60 | ||
| Dividend value = | $ 49,830 | ||
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