Question

Problem 14-01A a-c (Part Level Submission) (Video) On January 1, 2020, Wildhorse Corporation had the following stockholders' equity accounts. Common Stock ($24 par value, 63,000 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $1,512,000 206,000 636,000 During the year, the following transactions occurred. Feb. 1 Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $40. July 1 Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $326,500.

Answer 1

Date	Account titles & Explanations					Debit	Credit
1-Feb	Cash dividend					126,000
	dividends payable		(63000*2)				126,000
1-Mar	Dividends payable					126000
	Cash						126000
1-Apr	no entry	(126,000 shares at $12 per share)
1-Jul	Stock dividend		(18900*14)			264600
	Stock dividend distributable			(18900*12)			226,800
	paid in capital in excess of par -CS						37800
	(126,000*15%=18900 shares)
31-Jul	Stock dividend distributable					226800
	common stock						226800
1-Dec	Cash dividend					43470
	dividends payable						43470
	(126,000+18900)*.3
31-Dec	income summary					326,500
	retained earnings						326,500
31-Dec	retained earnings					264,600
	Stock dividend						264,600
31-Dec	Retained earnings					169,470
	cash dividend						126,000