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Stockholders' Equity Section of Balance Sheet

The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year:

Common Stock, $15 par	$603,000
Paid-In Capital from Sale of Treasury Stock	24,800
Paid-In Capital in Excess of Par—Common Stock	16,080
Retained Earnings	947,000
Treasury Stock	12,445

Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 655 shares have been reacquired.

Goodale Properties Inc.
Stockholders' Equity
June 30, 20XX
Paid-In Capital:
	$
		$
Total Paid-In Capital		$
Total		$
Total Stockholders' Equity			$

*

Selected Dividend Transactions, Stock Split

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:

Journalize the transactions.

If no entry is required, type "No Entry Required" and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 8. Split the common stock 2 for 1 and reduced the par from $48 to $24 per share. After the split, there were 87,000 common shares outstanding.

Jan. 8	No Entry Required
	No Entry Required

Feedback

Review the effect of stock splits on equity accounts.

Apr. 30. Declared semiannual dividends of $1.6 on 6,000 shares of preferred stock and $0.14 on the common stock payable on July 1.

Apr. 30	Cash Dividends
	Cash Dividends Payable

Feedback

When a company declares a dividend it becomes legally binding.

July 1. Paid the cash dividends.

July 1	Cash Dividends Payable
	Cash

Feedback

What are the stockholders' receiving from the corporation?

Oct. 31. Declared semiannual dividends of $1.6 on the preferred stock and $0.12 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $43.

Cash Dividends	Cash Dividends
	Cash Dividends Payable
Stock dividends	Stock Dividends
	Stock Dividends Distributable
	Paid-In Capital in Excess of Par-Common Stock

Feedback

On the date of declaration of a cash dividend, it becomes legally binding. How do stock dividends affect stockholders' equity?

Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend.

Payment	Cash Dividends Payable
	Cash
Issuance	Stock Dividends Distributable
	Common Stock

Answer 1

Goodale Properties Inc.
Stockholders' Equity
June 30, 20XX
Paid-in capital:
Common stock, $15 par
(80,000 shares authorized,
40,200 shares issued)	$603,000
Excess of issue price over par	16,080	$619,080
From sale of treasury stock		24,800
Total paid-in capital		$643,880
Retained earnings		947,000
Total		$1,590,880
Deduct treasury stock
655 shares at cost)		12,445
Total stockholders’ equity			$1,578,435

Jan.	8	No entry required. The stockholders’ ledger would be revised to
		record the increased number of shares held by each stockholder.
Apr.	30	Cash Dividends {[(6,000 shares × $1.60) +	21,780
		(87,000 shares × $0.14)] = $9,600 + $12,180 = $21,780}
		Cash Dividends Payable		21,780
July	1	Cash Dividends Payable	21,780
		Cash		21,780
Oct.	31	Cash Dividends {[(6,000 shares × $1.60) +	20,040
		(87,000 shares × $0.12)] = $9,600 + $10,440 = $20,040}
		Cash Dividends Payable		20,040
	31	Stock Dividends [(87,000 shares × 2% × $43) = $74,820]	74,820
		Stock Dividends Distributable (1,740 shares × $24)		41,760
		Paid-In Capital in Excess of Par—Common Stock		33,060
		[1,740 shares × ($43 – $24)]
Dec.	31	Cash Dividends Payable	20,040
		Cash		20,040
	31	Stock Dividends Distributable	41,760
		Common Stock		41,760