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Is the work correct? If not can someone help with the solutions? Problem 5: Stock dividends (12 pts) On January 1, 2019, Las Polamas Inc
Is the work correct? If not can someone help with the solutions?
Problem 5: Stock dividends (12 pts) On January 1, 2019, Las Polamas Inc had the following account balances in its shareholders equity accounts. Common stock, 30.01 par, 1,000,000 shares issued $10,000 Paid-in capital-excess of par, common 6,990,000 Retained earnings 4,000,000 During 2019, Las Polamas Inc. had several transactions relating to common stock March 8: Declared and distributed an 8% stock dividend on outstanding common stock. The fair value of the common stock is $8 per share on this date A 5-for-4 stock split was declared and distributed on outstanding common stock and effected in the form of a 25% stock dividend. The fair value of the stock was $7.50 on this date Aug 15: Required: a. Prepare journal entries to record the above two transactions (10 pts). March & Paid in Copital -excess of par 6400 Common stock 6400 10,08% 6406 690x8k Aug. is Retained Earnings Connor stat PIC- excess of por 15,000 2000 22XX 7.5: ISK b. Show the balance of common stock and paid-in capital-excess of par on December 31, 2019 (2 pts), Common Stock: 6400+ - +2,000 10,000 PIL-oan of Por: Gogom- 600 + 11000 6,996,600Step by Step Solution
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