Hamilton Travel Corporation's (HTC) shareholders' equity section at December 31, 2021 appears below: Shareholders' equity Common shares, 1,000,000 shares authorized, 80,000 shares issued Retained earnings Total shareholders' equity On June 30, 2022, the board of directors of HTC declared a 10% stock dividend, payable on July 31, 2022, to shareholders of record on July 15, 2022. The fair market value of HTC's shares on June 30, 2022, was $12 per share. On December 1, 2022, the board of directors declared a 2-for-1 stock split effective December 15, 2022. HTC's shares were selling for $16 on December 1, 2022, before the share split was declared. Profit for 2022 was $225,000 and there were no cash dividends declared. Instructions (a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. Indicate the date of the entry and if no entry is required, write "no entry". $720,000 180,000 $900.000 (b) Fill in the amount that would appear in the shareholders' equity section for HTC at December 31, 2022, for the following items: 1. Common shares 2. Retained earnings 3. Total shareholders' equity 4. Number of common shares issued 555 $
Hamilton Travel Corporation's (HTC) shareholders' equity section at December 31, 2021 appears below: Shareholders' equity Common shares, 1,000,000 shares authorized, 80,000 shares issued Retained earnings Total shareholders' equity On June 30, 2022, the board of directors of HTC declared a 10% stock dividend, payable on July 31, 2022, to shareholders of record on July 15, 2022. The fair market value of HTC's shares on June 30, 2022, was $12 per share. On December 1, 2022, the board of directors declared a 2-for-1 stock split effective December 15, 2022. HTC's shares were selling for $16 on December 1, 2022, before the share split was declared. Profit for 2022 was $225,000 and there were no cash dividends declared. Instructions (a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. Indicate the date of the entry and if no entry is required, write "no entry". $720,000 180,000 $900.000 (b) Fill in the amount that would appear in the shareholders' equity section for HTC at December 31, 2022, for the following items: 1. Common shares 2. Retained earnings 3. Total shareholders' equity 4. Number of common shares issued 555 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:QOLUTION &TUMARS
Hamilton Travel Corporation's (HTC) shareholders' equity section at December 31, 2021
appears below:
Shareholders' equity
Common shares, 1,000,000 shares authorized,
80,000 shares issued
Retained earnings
Total shareholders' equity
On June 30, 2022, the board of directors of HTC declared a 10% stock dividend, payable on July
31, 2022, to shareholders of record on July 15, 2022. The fair market value of HTC's shares on
June 30, 2022, was $12 per share.
On December 1, 2022, the board of directors declared a 2-for-1 stock split effective December
15, 2022. HTC's shares were selling for $16 on December 1, 2022, before the share split was
declared. Profit for 2022 was $225,000 and there were no cash dividends declared.
$720,000
180,000
$900.000
Instructions
(a) Prepare the journal entries on the appropriate dates to record the stock dividend and the
stock split. Indicate the date of the entry and if no entry is required, write "no entry".
(b) Fill in the amount that would appear in the shareholders' equity section for HTC at December
31, 2022, for the following items:
1. Common shares
2. Retained earnings
3. Total shareholders' equity
4. Number of common shares issued.
$
$
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