On January 1, 2020, the Whispering Winds Corp. had $2,750,000 of $10 par value common stock outstanding that was issued at par and Retained Earnings of $1,540,000. The company issued 144,000 shares of common stock at $16 per share on July 1. On December 15, the board of directors declared a 10% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021. The market value of Whispering Winds Corp. stock was $17 per share on December 15 and $17 per share on December 31. Net income for 2020 was $500,000.

(a)

Partially correct answer icon

Your answer is partially correct.

Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date July 1Dec. 15	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date July 1Dec. 15	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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List of Accounts

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(b)

Prepare the stockholders' equity section of the balance sheet for Whispering Winds Corp. at December 31, 2020.

WHISPERING WINDS CORP. Balance Sheet (Partial) December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
select an opening section name Preferred StockAdditional Paid-in Capital in Excess of Par ValuePaid-in CapitalCapital StockAdditional Paid-in CapitalTotal Stockholders EquityTotal Capital StockCommon StockCommon Stock Dividends DistributableTotal Paid-in CapitalRetained EarningsStockholders' Equity
select an opening section name Total Stockholders EquityAdditional Paid-in Capital in Excess of Par ValueStockholders' EquityTotal Paid-in CapitalRetained EarningsPreferred StockCapital StockCommon StockCommon Stock Dividends DistributablePaid-in CapitalAdditional Paid-in CapitalTotal Capital Stock
select an opening section name Additional Paid-in Capital in Excess of Par ValueCommon Stock Dividends DistributableTotal Paid-in CapitalTotal Stockholders EquityAdditional Paid-in CapitalTotal Capital StockRetained EarningsPaid-in CapitalPreferred StockCapital StockCommon StockStockholders' Equity
select an opening section name Common Stock Dividends DistributableTotal Capital StockRetained EarningsAdditional Paid-in Capital in Excess of Par ValuePreferred StockCapital StockPaid-in CapitalTotal Stockholders EquityCommon StockStockholders' EquityTotal Paid-in CapitalAdditional Paid-in Capital		$enter a dollar amount
select an opening section name Total Capital StockRetained EarningsCommon StockStockholders' EquityCapital StockAdditional Paid-in Capital in Excess of Par ValueCommon Stock Dividends DistributableTotal Paid-in CapitalTotal Stockholders EquityAdditional Paid-in CapitalPaid-in CapitalPreferred Stock		enter a dollar amount
select an opening section name Total Stockholders EquityPreferred StockCapital StockTotal Capital StockRetained EarningsStockholders' EquityAdditional Paid-in CapitalTotal Paid-in CapitalCommon StockAdditional Paid-in Capital in Excess of Par ValuePaid-in CapitalCommon Stock Dividends Distributable		enter a subtotal of the two previous amounts
select an opening section name Common Stock Dividends DistributablePaid-in CapitalCommon StockPreferred StockAdditional Paid-in CapitalRetained EarningsTotal Capital StockCapital StockStockholders' EquityAdditional Paid-in Capital in Excess of Par ValueTotal Paid-in CapitalTotal Stockholders Equity		enter a dollar amount
select an opening section name Preferred StockCommon StockStockholders' EquityAdditional Paid-in Capital in Excess of Par ValueTotal Capital StockAdditional Paid-in CapitalCommon Stock Dividends DistributableCapital StockRetained EarningsTotal Paid-in CapitalPaid-in CapitalTotal Stockholders Equity		enter a total amount for this subsection
select an opening section name Paid-in CapitalRetained EarningsTotal Capital StockCommon StockStockholders' EquityTotal Paid-in CapitalPreferred StockCommon Stock Dividends DistributableTotal Stockholders EquityAdditional Paid-in Capital in Excess of Par ValueAdditional Paid-in CapitalCapital Stock		enter a dollar amount
select an opening section name Additional Paid-in CapitalCapital StockTotal Paid-in CapitalAdditional Paid-in Capital in Excess of Par ValuePreferred StockStockholders' EquityTotal Stockholders EquityTotal Capital StockCommon Stock Dividends DistributableRetained EarningsCommon StockPaid-in Capital		$enter a total amount for this section