Question

Exercise 14-03a-b (Video) On January 1, 2020, Ivanhoe Corporation had $1,010,000 of common stock outstanding that was issued at par. It also had retained earnings of $747,000. The company issued 37,500 shares of common stock at par on July 1 and earned net income of $405,000 for the year. Journalize the declaration of a 14% stock dividend on December 10, 2020, for the following independent assumptions. (Credit account titles are automatically indented when amount is entered. De not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) a. b. Par value is $10, and market price is $10 Par value is $5, and market price is $21. No Account Tiles and Explanation Det

Answer 1

Working Note: Calculation of Outstanding Number of Shares if Par Value is $10 Per Share: Beginning Balance of Common Stock at Par 1,010,000.00 Issued during year at Par 405,000.00 Total Common Stock at Par 1,415,000.00 Par Value Per Share 10.00 4 44 4 Number of Outstanding Shares 141500.00 Calculation of Outstanding Number of Shares if Par Value is $5 Per Share: Beginning Balance of Common Stock at Par 1,010,000.00 Issued during year at Par 405,000.00 Total Common Stock at Par 1,415,000.00 Par Value Per Share 5.00 4 44 4 Number of Outstanding Shares 283000.00

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. $ 198,100.00 Retained Earnings (141500 x 14% x $10) Stock Dividends Distributable (To record Declaration of Stock Dividend) $ 198,100.00 $ 832,020.00 Retained Earnings (283000 x 14% x $21) Stock Dividends Distributable (To record Declaration of Stock Dividend) $ 832,020.00