Accоunting fоr Lаrge Stоck Dividend аnd Stock Split Wаtts Corporation has 32,000 shares of $10 par value common stock outstanding and retained earnings of $656,000. The company declares a 100% stock dividend. The market price at the declaration is $17 per share. Prepare the general journal entry for the stock dividend in part a and stock split in part b. a. Prepare the general journal entry for the stock dividend. ● Note: If a journal entry isn't required on any of the dates shown, select "No entry—debit" and "No entry—credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Debit Credit {#1} {#2} b. Prepare the general journal entry for the stock split. ● Note: If a journal entry isn't required on any of the dates shown, select "No entry—debit" and "No entry—credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Debit Credit {#3} {#4}
Identifying аnd Anаlyzing Finаncial Statement Effects оf Dividends The stоckhоlders’ equity of Palepu Company at December 31, 2021, appears below. Common stock, $10 par value, 300,000 shares authorized; Shares issued and outstanding (1) $1,200,000 Paid-in capital in excess of par value 720,000 Retained earnings 450,000 (1) 120,000 shares at $10 par value. During 2022, the following transactions occurred: May 12 Declared and issued a 7% stock dividend; the common stock market value was $18 per share. Dec. 31 Declared and paid a cash dividend of 75 cents per share. a. Prepare the journal entries for these transactions. Date Account Debit Credit May 12 {#1} {#2} {#3} Dec. 31 {#4} {#5} b. Post the journal entries to the related T-accounts. NOTE: Enter your answers, in transaction order, in the first open field of the appropriate column in each account. Cash {#6} {#7} {#8} {#9} Additional paid-in capital {#10} {#11} {#12} {#13} Common stock {#14} {#15} {#16} {#17} Retained earnings {#18} {#19} {#20} {#21} c. Prepare a retained earnings reconciliation for 2022 assuming that the company reports 2022 net income of $425,000. Note: Use negative signs with your answers, when appropriate. Palepu Company Statement of Retained Earnings For the Year Ended Dec. 31 {#22} {#23} {#24} {#25} {#26}