Question

- 1.30 y Practice Assignment Gradebook . c ORION Downloadable Textbook Assignment RCES Brief Exercise 14-03 Crane Corporation has 51,500 shares of $11 par value common stock outstanding. It dedans 15% stock dividend on December when the market price per shares 17 The dividend shares are issued on December Prepare the entries for the declaration and sunce of the stock dividend. (ecord journal s in the order presented the proc e se utomatically indented when amontntered. Do not indenta lly entry required select No Fatry for the account and mounts Date Account Titles and Explanation Credit Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Ry accessing this question A nsW am w QUE R Patent

Answer 1

Question :1.

Solution:

Credit Date Dec. 1 Accounts Title Retained Earnings (51,500x15%<$17) Stock dividend distributable Debit $ 131,325 $ 131,325 $ 131,325 Dec. 31 Stock dividend distribuable Common stock (51,500x15%$11) Paid-in capital in excess of par value, Common stock $ $ 84,975 46,350

Question 2.

Solution:

Credit No. Accounts Title a. Retained Earnings Stock dividend distributable Debit $ 429,120 $ 429,120 $ 892,320 b. Retained Earnings Stock dividend distributable $ 892,320

Workings: a. stock dividend declared = ($1,045,000/10 + 44,500)×16%×$18 = $429,120

   b. stock dividend declared = ($1,045,000/5 + 44,500)×16%×$22 = $892,320

Question 3.

Solution: Ending balance in retained earnings at the end of 2020 can be computed as follows:

Ending balance in Retained Earnings = Beg. balance + Net income - Cash dividend - Stock div.

   = $318,500 + 283,000 - 198,500×$0.70 - 198,500×10%*$14

   = $184,650

Question 4.

Solution: End. bal. of Retained Earnings = Beg. bal. + Net Inc. - Cash div. - overstatement error correction - stock dividends

= $531,000 + 340,500 - 111,000 - 35,500 - 55,500

= $669,500