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
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter11: Accounting For Transactions Using A General Journal
Section: Chapter Questions
Problem 3AP
Related questions
Question
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage