Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show all work. Neat handwriting please. Exercise 244 (Part Level Submission) Tamarisk, Inc.'s stockholders' equity section at December 31, 2019, appears below: Stockholder's equity

image text in transcribed
image text in transcribed
please show all work. Neat handwriting please.
Exercise 244 (Part Level Submission) Tamarisk, Inc.'s stockholders' equity section at December 31, 2019, appears below: Stockholder's equity Paid-in capital Common stock, $10 par, 61,000 outstanding $610,000 Pald-in capital in excess of par 176,000 Total paid-in capital $786,000 Retained earnings 158,000 Total stockholder's equity $944,000 On June 30, 2020, the board of directors of Tamarisk, Inc, declared a 15% stock dividend, payable on July 31, 2020, to stockholders of record on July 15, 2020. The fair value of Tamarisk, Inc.'s stock on June 30, 2020, was $16. On December 1, 2020, the board of directors declared a 2-for 1 stock split effective December 15, 2020. Tamarisk, Inc.'s stock was selling for $18 on December 1, 2020, before the stock split was declared. Par value of the stock was adjusted. Net Income for 2020 was $228,000 and there were no cash dividends declared. Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order in which they must have occurred.) Date Account Titles and Explanation Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting College Version

Authors: Steven M. Bragg

1st Edition

1938910702, 978-1938910708

More Books

Students also viewed these Accounting questions

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago