Question

In: Accounting

The stockholders’ equity accounts of Bridgeport Company have the following balances on December 31, 2020. Common...

The stockholders’ equity accounts of Bridgeport Company have the following balances on December 31, 2020.

Common stock, $10 par, 298,000 shares issued and outstanding $2,980,000
Paid-in capital in excess of par—common stock 1,280,000
Retained earnings 5,840,000


Shares of Bridgeport Company stock are currently selling on the Midwest Stock Exchange at $35.

Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(a) A stock dividend of 8% is (1) declared and (2) issued.
(b) A stock dividend of 100% is (1) declared and (2) issued.
(c) A 2-for-1 stock split is (1) declared and (2) issued.


No.

Account Titles and Explanation

Debit

Credit

(a) (1)

enter an account title for case A to record the declaration of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case A to record the declaration of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case A to record the declaration of stock dividends

enter a debit amount

enter a credit amount

(a) (2)

enter an account title for case A to record the issuance of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case A to record the issuance of stock dividends

enter a debit amount

enter a credit amount

(b) (1)

enter an account title for case B to record the declaration of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case B to record the declaration of stock dividends

enter a debit amount

enter a credit amount

(b) (2)

enter an account title for case B to record the issuance of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case B to record the issuance of stock dividends

enter a debit amount

enter a credit amount

(c) (1)

enter an account title for case C to record the declaration of the stock split

enter a debit amount

enter a credit amount

enter an account title for case C to record the declaration of the stock split

enter a debit amount

enter a credit amount

(c) (2)

enter an account title for case C to record the issuance of the stock split

enter a debit amount

enter a credit amount

enter an account title for case C to record the issuance of the stock split

enter a debit amount

enter a credit amount

Solutions

Expert Solution

Answer:

No. Account title and Explanation Debit Credit
(a)1 Retained earnings [(298,000 x 8%) x $35 market rate] $834,400
Common stock dividend distributable [(298,000 x 8%) x $10 par] $238,400
Paid-in capital in excess of par-Common $596,000
[To record declaration of stock dividends]
(a)2 Common stock dividend distributable $238,400
Common stock $238,400
[To record issuance of stock dividends]
(b)1 Retained earnings [(298,000 x 100%) x $10 par] $2,980,000
Common stock dividend distributable $2,980,000
[To record declaration of stock dividends]
(b)2 Common stock dividend distributable $2,980,000
Common stock $2,980,000
[To record issuance of stock dividends]
(c )1 No Entry for stock-split declared
(c )2 No Entry for stock-split issued

Related Solutions

The stockholders’ equity accounts of Carla Company have the following balances on December 31, 2020. Common...
The stockholders’ equity accounts of Carla Company have the following balances on December 31, 2020. Common stock, $10 par, 326,000 shares issued and outstanding $3,260,000 Paid-in capital in excess of par—common stock 1,110,000 Retained earnings 5,930,000 Shares of Carla Company stock are currently selling on the Midwest Stock Exchange at $36. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
The stockholders’ equity accounts of Waterway Company have the following balances on December 31, 2020. Common...
The stockholders’ equity accounts of Waterway Company have the following balances on December 31, 2020. Common stock, $10 par, 281,000 shares issued and outstanding $2,810,000 Paid-in capital in excess of par—common stock 1,220,000 Retained earnings 5,600,000 Shares of Waterway Company stock are currently selling on the Midwest Stock Exchange at $34. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
The stockholders’ equity accounts of Carla Company have the following balances on December 31, 2020. Common...
The stockholders’ equity accounts of Carla Company have the following balances on December 31, 2020. Common stock, $10 par, 288,000 shares issued and outstanding $2,880,000 Paid-in capital in excess of par—common stock 1,180,000 Retained earnings 5,750,000 Shares of Carla Company stock are currently selling on the Midwest Stock Exchange at $38. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
The stockholders’ equity accounts of Flint Company have the following balances on December 31, 2020. Common...
The stockholders’ equity accounts of Flint Company have the following balances on December 31, 2020. Common stock, $10 par, 292,000 shares issued and outstanding $2,920,000 Paid-in capital in excess of par—common stock 1,320,000 Retained earnings 5,080,000 Shares of Flint Company stock are currently selling on the Midwest Stock Exchange at $33. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. (a) A stock dividend of 6% is (1)...
The stockholders’ equity accounts of Stellar Company have the following balances on December 31, 2017. Common...
The stockholders’ equity accounts of Stellar Company have the following balances on December 31, 2017. Common stock, $10 par, 285,000 shares issued and outstanding $2,850,000 Paid-in capital in excess of par—common stock 1,230,000 Retained earnings 5,240,000 Shares of Stellar Company stock are currently selling on the Midwest Stock Exchange at $38. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
The stockholders’ equity accounts of Ayayai Company have the following balances on December 31, 2017. Common...
The stockholders’ equity accounts of Ayayai Company have the following balances on December 31, 2017. Common stock, $3 par, 1,000,000 shares issued and outstanding $3,000,000 Paid-in-capital in excess of par – common stock 4,500,000 Retained earnings 8,318,000 Shares of Ayayai Company stock are currently selling on the Midwest Stock Exchange at $23. Prepare the appropriate journal entries for each of the following independent cases. The stockholders’ equity accounts of Ayayai Company have the following balances on December 31, 2017. Common...
The stockholders’ equity accounts of Sarasota Company have the following balances on December 31, 2017. Common...
The stockholders’ equity accounts of Sarasota Company have the following balances on December 31, 2017. Common stock, $10 par, 281,000 shares issued and outstanding $2,810,000 Paid-in capital in excess of par—common stock 1,220,000 Retained earnings 5,600,000 Shares of Sarasota Company stock are currently selling on the Midwest Stock Exchange at $34. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
The stockholders equity accounts of G.K. Chesterton Company have the following balances on December 31, 2014....
The stockholders equity accounts of G.K. Chesterton Company have the following balances on December 31, 2014. Common stock, $10 par, 343,000 shares issued and outstanding $3,430,000 Paid-in capital in excess of common stock 1,299,000 Retained earnings 5,676,000 Shares of G.K. Chesterton Company stock are currently selling on the Midwest Stock Exchange at $39. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no...
Exercise 15-14 The stockholders’ equity accounts of Waterway Company have the following balances on December 31,...
Exercise 15-14 The stockholders’ equity accounts of Waterway Company have the following balances on December 31, 2017. Common stock, $10 par, 304,000 shares issued and outstanding $3,040,000 Paid-in capital in excess of par—common stock 1,290,000 Retained earnings 5,340,000 Shares of Waterway Company stock are currently selling on the Midwest Stock Exchange at $40. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no...
The following is the Stockholders Equity section of Walmart at December 31, 2020: 12/31/2020 12/31/2021 Common...
The following is the Stockholders Equity section of Walmart at December 31, 2020: 12/31/2020 12/31/2021 Common stock, $10 par value, (700,000 shares issued and outstanding) $7,000,000 Additional paid-in-capital CS $4,000,000 Retained Earnings $5,600,000 The following transactions occurred during 2021: 100,000 shares of common stock were purchased for the treasury at $24 per share Preferred stock was issued for land. The asking price of the land was $3,500,000. The value of the land was $3,400,000. 40,000 shares of treasury stock were...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT