Question

On Janury 1, 2020, Crane Corporzton hadtnefalowirg stodo der cqity accout Common Stock ($26 parvalue, 56,500 ว"ares issoc and arst2ndng) Reta ned Tamngs Cuing the year, te felowig raaars oored Apr. L Announced 릅 2-fo-i stock spilt. Prio. to the splt, the market price 2 Shane was 538 Dec L Declared a :0.30 pershare ddend to stackholde of rco d on December 5, payable January 5, 2021 Daermnad ehdl fval incre far นาย's was $398.sou. ournalze the trensections end the doeing entries fo net Incore and didends,(Credit accoont tMies are automaticaly indented when amount is entered,. Do not Indent manualy, It problem entry is required, sNect "No Estbry for the account ttfes and enter for the amounts, Recornd foornal evatries In the order presented in the Dabs Account Titiks and Explanabion Enter the beghnng balancs, and past the entries to the stodkhodes' equty scounts. (Wohe: Opedbon stockhales q.Ity acountss needed.) (Post ewtries in the order of journal entries presented im the previous part Date Explanation RefDebit Dabe Expanatiom RefDebit Dabe Explanatio ReDebit Date apianatio fDbit Date aplanatio fDbit Precare ง stockholders' equhy section at December 31. (Enter account name only and do not provide descriptive information.)

Answer 1

Crane Corporation Journal Enteries Debit in $ Credit in $ Particulars Date Cash Dividends a/c 1.2.2020 Dr. 113000 To Dividends Payable 113000 (Declared dividends)56500 x 2 113000 Retained Earnings a/c 1.2.2020 Dr. 113000 To Dividends Payable 113000 (Declared dividends)56500 x 2 113000 1.3.2020Dividends Payable a/c Dr. 113000 To Cash 113000 (Dividends paid) 1.4.2020 No Entry Stock Dividends a/c 1.7.2020 Dr. 169500 To Common Stock Dividends Distributable 146900 To Paid-on Capital in excess of par value 22600 (10% stock dividend) 56500 x 2 = 113000 x 10% x 15 = 169500 113000 x 10% x 13 146900 Common Stock Dividends Distributable a/c 31.7.2020 Dr.146900 To Common Stock 146900 (Issued shares for stock dividend) 1.12.2020 Retained Earnings a/c 37290 Dr. To Dividends Payable 37290 (Dividend declared) 113000 11300 124300 x 0.30 37290 31.12.2020 Income Summary a/c Dr. 398500 To Retained Earnings 398500 (Net income determined for the year) (c) Prepare a stockholders' equity section at December 31 Balance Sheet (partial) As at 31.12.2020 Stockholders' equity Paid-in capital Capital stock Common stock, $13 par value, 124,300 Shares issued and outstanding 1615900 Additional paid-in capital In excess of par value 222600 Total paid-in capital 1838500 Retained earnings 689710 Total stockholders' equity 2528210

Common Stock Debit in $ Credit in $ Date Particulars Balance 1.1.2020 Balance 1469000 Common stock Dividends distributable 31.7.2020 146900 1615900 Common Stock Dividends Distributable Debit in $ Credit in $ Date Particulars Balance 1.7.2020 Stock Dividends 146900 146900 31.7.2020 Common Stock 146900 0 Paid-In Capital in Exess of Par Value Debit in $ Credit in $ Date Particulars Balance 1.1.2020 Balance 200000 1.7.2020 Stock Dividends 22600 222600 Retained Earnings Debit in $ Credit in $ Date Particulars Balance 1.1.2020 Balance 611000 1.2.2020 Cash Dividends 113000 498000 1.7.2020 Stock Dividend 169500 328500 1.12.2020 Cash Dividends 37290 291210 31.12.2020 Net Income 398500 689710