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Napco Company reported the following stockholders' equity section in its most recent balance sheet. (Click the icon to view the capital structure.) Napco Company declared a stock dividend of 526,800 shares on a date when the firm's common stock was selling for $22 per share. The shares issued to satisfy the stock dividend are newly issued shares, not treasury shares, and the treasury shares are not entitled to the stock dividend. Provide the journal entries at the declaration date and the issue date. Prepare the stockholders' equity section of the balance sheet after the issuance of the dividend. Provide the journal entries at the declaration date and the issue date. (Record debits first, then credits. Exclude explanations from any journal entries.) First, record the journal entry to account for the stock dividend on the date of declaration. Account Date of Declaration Now, record the journal entry to close the dividends account on the date of distribution. Account Date of Distribution Capital Structure Stockholders' Equity Balance Common Stock ($5 par value, 2,800,000 shares authorized, 1,365,000 shares issued, $ 6,825,000 1,317,000 shares outstanding) Additional Paid-in Capital in Excess of Par - Common Total Contributed Capital Retained Earnings Total Contributed Capital and Retained Earnings Less: Cost of Treasury Stock (48,000 shares) Total Stockholders' Equity 12,109,000 $ 18,934,000 12,630,000 $ 31,564,000 (1,920,000) $ 29,644,000

Napco Company reported the following stockholders' equity section in its most recent balance sheet. (Click the icon to view the capital structure.) Napco Company declared a stock dividend of 526,800 shares on a date when the firm's common stock was selling for $22 per share. The shares issued to satisfy the stock dividend are newly issued shares, not treasury shares, and the treasury shares are not entitled to the stock dividend. Provide the journal entries at the declaration date and the issue date. Prepare the stockholders' equity section of the balance sheet after the issuance of the dividend. Provide the journal entries at the declaration date and the issue date. (Record debits first, then credits. Exclude explanations from any journal entries.) First, record the journal entry to account for the stock dividend on the date of declaration. Account Date of Declaration Now, record the journal entry to close the dividends account on the date of distribution. Account Date of Distribution Capital Structure Stockholders' Equity Balance Common Stock ($5 par value, 2,800,000 shares authorized, 1,365,000 shares issued, $ 6,825,000 1,317,000 shares outstanding) Additional Paid-in Capital in Excess of Par - Common Total Contributed Capital Retained Earnings Total Contributed Capital and Retained Earnings Less: Cost of Treasury Stock (48,000 shares) Total Stockholders' Equity 12,109,000 $ 18,934,000 12,630,000 $ 31,564,000 (1,920,000) $ 29,644,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Napco Company reported the following stockholders' equity section in its most recent balance sheet. (Click the icon to view the capital structure.) Napco Company declared a stock dividend of 526,800 shares on a date when the firm's common stock was selling for $22 per share. The shares issued to satisfy the stock dividend are newly issued shares, not treasury shares, and the treasury shares are not entitled to the stock dividend. Provide the journal entries at the declaration date and the issue date. Prepare the stockholders' equity section of the balance sheet after the issuance of the dividend. Provide the journal entries at the declaration date and the issue date. (Record debits first, then credits. Exclude explanations from any journal entries.) First, record the journal entry to account for the stock dividend on the date of declaration. Account Date of Declaration Now, record the journal entry to close the dividends account on the date of distribution. Account Date of Distribution Capital Structure Stockholders' Equity Balance Common Stock ($5 par value, 2,800,000 shares authorized, 1,365,000 shares issued, $ 6,825,000 1,317,000 shares outstanding) Additional Paid-in Capital in Excess of Par - Common Total Contributed Capital Retained Earnings Total Contributed Capital and Retained Earnings Less: Cost of Treasury Stock (48,000 shares) Total Stockholders' Equity 12,109,000 $ 18,934,000 12,630,000 $ 31,564,000 (1,920,000) $ 29,644,000
Transcribed Image Text:Napco Company reported the following stockholders' equity section in its most recent balance sheet. (Click the icon to view the capital structure.) Napco Company declared a stock dividend of 526,800 shares on a date when the firm's common stock was selling for $22 per share. The shares issued to satisfy the stock dividend are newly issued shares, not treasury shares, and the treasury shares are not entitled to the stock dividend. Provide the journal entries at the declaration date and the issue date. Prepare the stockholders' equity section of the balance sheet after the issuance of the dividend. Provide the journal entries at the declaration date and the issue date. (Record debits first, then credits. Exclude explanations from any journal entries.) First, record the journal entry to account for the stock dividend on the date of declaration. Account Date of Declaration Now, record the journal entry to close the dividends account on the date of distribution. Account Date of Distribution Capital Structure Stockholders' Equity Balance Common Stock ($5 par value, 2,800,000 shares authorized, 1,365,000 shares issued, $ 6,825,000 1,317,000 shares outstanding) Additional Paid-in Capital in Excess of Par - Common Total Contributed Capital Retained Earnings Total Contributed Capital and Retained Earnings Less: Cost of Treasury Stock (48,000 shares) Total Stockholders' Equity 12,109,000 $ 18,934,000 12,630,000 $ 31,564,000 (1,920,000) $ 29,644,000
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