Question

CALCULATOR PRINTER VERSION BACK Your answer is partially correct. Try again. On January 1, 2019, Windsor, Inc. had $1.495,000 of common stock outstanding that was issued at par. It also had retained earnings of $743,000. The company issued 38,000 shares common stock at par on July 1 and earned net income of $390,000 for the year. Journalire the declaration of a 16% stock dividend on December 10, 2019, for the following independent assumptions. (Credit account titles are automatically indented when am entered. Do 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 $18. Par value is $5, and market price is $22. No. Account Titles and Explanation () stock Dividends T Common Stock Dividends Distributable 1 GOBOG Pald-in Capital in Excess of Par-Common Stock (b) Stock Dividends T 13376 Common Stock Dividends Distributable Paid in Capital in Excess of Par-Common Stock IT 103360 Click if y ou like to show Work for this questions on Show Work

Answer 1

Credit Windor Inc. Date Account a Stock Dividends Common Stock Dividends Distributable Paid in Capital in Excess of Par-Common Stock Debit 684,000 Calculation =30,000*18 -30,000*10 380,000 304,000 b 1,186,240 Stock Dividends Common Stock Dividends Distributable Paid in Capital in Excess of Par-Common Stock =53,920*22 =53,920*5 269,600 916,640 Calculation Par $10 Par $5 Par $10 1,495,000 Par $5 1,495,000 10 Workings Stock Dividends Opening Common Shares Value Par value per share Opening Number of Common Shares Shares Issued Subtotal 16% Stock Dividends Number of Common Shares Issued =1,495,000/5 149,500 38,000 187,500 30,000' 217,500 299,000 =1,495,000/10 38,000 337,000 53,920 =187,500*16% 390,920 =337,000*16%