Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The stockholders' equity accounts of Larkspur Company have the following balances on December 31, 2020. Common stock $10 par, 275,000 shares issued and outstanding $2,750,000

image text in transcribed
image text in transcribed
image text in transcribed
The stockholders' equity accounts of Larkspur Company have the following balances on December 31, 2020. Common stock $10 par, 275,000 shares issued and outstanding $2,750,000 Paid-in capital in excess of par common stock 1,300,000 Retained earnings 6,150,000 Shares of Larkspur 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 required, select "No Entry for the account titles and enter for the amounts) (a) Astock dividend of 8% is (1) declared and (2) Issued. (b) Astock dividend of 100% is (1) declared and (2) issued. (c) A2-for-1 stock split is (1) declared and (2) issued. No. Account Titles and Explanation Debit Credit 748000 (a) (1) Retained Earnings Common Stock Dividend Distributable 220000 Debit Credit No. Account Titles and Explanation a) (1) Retained Earnings Common Stock Dividend Distributable 728000 220000 Paid-in Capital in Excess of Par-Common Stock $28000 (a)(2) Retained Earnings 2750000 Common Stock Dividend Distributable 2250000 b) (1) Common Stock Dividend Distributable 220000 Common Stock 220000 (b) (2) Common Stock Dividend Distributable 2750000 Common Stock 2750000 10 (1) Id 121 Tat2) Retained Earnings 2750000 Common Stock Dividend Distributable 2750000 (b) (1) Common Stock Dividend Distributable 220000 Common Stock 220000 (b) (2) Common Stock Dividend Distributable 2750000 Common Stock 2750000 Ic) (1) c) 121 IMA ETTE e Textbook and Media

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

Managerial Accounting For Undergraduates

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

1st Edition

1618531123, 9781618531124

More Books

Students also viewed these Accounting questions

Question

d. Is it part of a concentration, minor, or major program?

Answered: 1 week ago

Question

BPR always involves automation. Group of answer choices True False

Answered: 1 week ago