Question

On January 1, 2017, Concord Corporation had these stockholders’ equity accounts.

Common Stock ($ 10 par value,  75,500 shares issued and outstanding)		$ 755,000
Paid-in Capital in Excess of Par Value		484,500
Retained Earnings		685,000

During the year, the following transactions occurred.

Jan.	15		Declared a $ 0.40 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb.	15		Paid the dividend declared in January.
Apr.	15		Declared a  10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $ 14 per share.
May	15		Issued the shares for the stock dividend.
Dec.	1		Declared a $ 0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2018.
Dec.	31		Determined that net income for the year was $ 413,000. Enter the beginning balances and post the entries to the stockholders’ equity T-accounts. (Post entries in the order of journal entries posted in the previous part. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.) Common Stock choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit balance Retained Earnings choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit balance Paid-in Capital in Excess of Par Value choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit balance Cash Dividends choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit balance Common Stock Dividends Distributable choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit balance Stock Dividends choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit amount choose a transaction datechoose a transaction date  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit amount choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a debit balance choose the end date of the accounting periodchoose the end date of the accounting period  1/1 Bal.1/154/155/1512/112/3112/31 Bal. enter a credit balance

Answer 1

Journal Entries
Date	Account Title and explanation	Debit	Credit
Jan, 15 2017	Retained Earning (75,500 Shares X $ 0.40)	$                           30,200
	To Dividend Payable		$                       30,200
	(To record the cash dividend declaration)
	Dividend Payable	$                           30,200
Feb, 15 2017	To Cash		$                       30,200
	(To record the payment of cash dividend)
	Retained Earning (7,550 Shares X $ 15)	$                       1,05,700
Apr, 15 2017	To Common Stock Dividend Declaration (7550 Shares X $ 10)		$                       75,500
	To Paid in Capital in Excess of Par		$                       30,200
	(To record the stock dividend declaration)
	Note:
	10% of Stock = 75,500 Shares X 10 % =7,550 shares
	Stock Dividend value = 7,550 shares X $ 14 (market price) = $ 105,700
May, 15 2017	Common Stock Dividend Declaration	$                           75,500
	To Common Shares Capital		$                       75,500
	(Issue stock for stock dividend)
Dec, 01 2017	Retained Earning (83,050 Shares X $ 0.60)	$                           49,830
	To Dividend Payable		$                       49,830
	(To record the cash dividend declaration)
	Dividend Payable	$                           49,830
Jan, 10, 2018	To Cash		$                       49,830
	(To record the payment of cash dividend)
	CALCULATION OF THE NUMBER OF SHARES OUTSTANDING AS ON DEC, 01
	Opening Balance of number of Shares	75500	Shares
	Add: Stock Dividend 10%	7550	Shares
	Outstanding shares as on Dec, 01	83050	Shares
	Dividend declared per shares	$                                0.60
	Dividend value =	$                           49,830