Question

Stockholders' Equity (December 31, 2016) Common stock-$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 500,000 75,000 410,000 $ 985,000 Stockholders' Equity (December 31, 2017) Common stock-$10 par value, 130,000 shares authorized, 56, 370 shares issued, 4,500 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($90,000 restricted by treasury stock) $ 563,700 151, 440 740,000 1,455, 140 (90,000) $1,365, 140 Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during year 2017 Jan. 5 Declared a $0.80 per share cash dividend, payable on January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.80 per share cash dividend, payable on April 10. July 5 Declared a $0.80 per share cash dividend, payable on July 10. July 31 Declared a 14% stock dividend when the stock's market value was S22 per share. Aug 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $0.80 per share cash dividend, date of record October 10. Nevt

Answer 1

Date	Account Titles	Debit	Credit
Jan-05	Cash Dividend	$         40,000		=50000*0.8
	Cash Dividend Payable		$         40,000
	(Cash dividend declared)
Jan-10	Cash Dividend Payable	$         40,000
	Cash		$         40,000
	(Cash dividend paid)
Mar-20	Treasury Stock	$         90,000
	Cash		$         90,000
	(Purchased 4500 shares)
Apr-05	Cash Dividend	$         36,400		=(50000-4500)*0.8
	Cash Dividend Payable		$         36,400
	(Cash dividend declared)
Apr-10	Cash Dividend Payable	$         36,400
	Cash		$         36,400
	(Cash dividend paid)
Jul-05	Cash Dividend	$         36,400		=(50000-4500)*0.8
	Cash Dividend Payable		$         36,400
	(Cash dividend declared)
Jul-10	Cash Dividend Payable	$         36,400
	Cash		$         36,400
	(Cash dividend paid)
Jul-31	Stock Dividend	$       140,140		=(50000-4500)*14%*22
	Stock Dividend Payable		$         63,700	=(50000-4500)*14%*10
	Paid in capital in excess of par		$         76,440	=140140-63700
	(Stock dividend declared)
Aug-14	Stock Dividend Payable	$         63,700
	Common Stock		$         63,700
	(Stock dividend issued)
Oct-05	Cash Dividend	$         41,496		=(50000-4500+6370)*0.8
	Cash Dividend Payable		$         41,496
	(Cash dividend declared)
Oct-10	Cash Dividend Payable	$         41,496
	Cash		$         41,496
	(Cash dividend paid)