Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Skysong Corporation's stockholders' equity section at December 31, 2019 appears below: Stockholder's equity Paid-in capital Common stock, $10 par, 58,000 outstanding $580,000 Paid-in capital in

image text in transcribedimage text in transcribedimage text in transcribed
Skysong Corporation's stockholders' equity section at December 31, 2019 appears below: Stockholder's equity Paid-in capital Common stock, $10 par, 58,000 outstanding $580,000 Paid-in capital in excess of par 150,000 Total paid-in capital $730,000 Retained earnings 155,000 Total stockholder's equity $885,000 On June 30, 2020, the board of directors of Skysong Corporation declared a 20% stock dividend, payable on July 31, 2020, to stockholders of record on July 15, 2020. The fair value of Skysong Corporation'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. Skysong Corporation's stock was selling for $20 on December 1, 2020, before the stock split was declared. Par value of the stock was adjusted. Net income for 2020 was $186,000 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 titles 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 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Fill in the amount that would appear in the stockholders' equity section for Skysong Corporation at December 31, 2020, for the following items: 1. Common stock LA 2. Number of shares outstanding 3. Par value per share $ 4. Paid-in capital in excess of par to 5. Retained earnings $ 6. Total stockholders' equity $

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

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions