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Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: 240,000 Common stock, $4 par value, 300,000 shares authorized, 60,000 shares issued, 6,000 shares in treasury Additional paid-in capital In excess of par value From treasury stock Retained earnings Less: Treasury stock (6,000 shares) at cost Total Stockholders’ Equity 360,000 22,500 382,500 261,000 883,500 103,500 780,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share. Mar. 12 Sold all of the treasury shares for $21 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $20 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31.

Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: 240,000 Common stock, $4 par value, 300,000 shares authorized, 60,000 shares issued, 6,000 shares in treasury Additional paid-in capital In excess of par value From treasury stock Retained earnings Less: Treasury stock (6,000 shares) at cost Total Stockholders’ Equity 360,000 22,500 382,500 261,000 883,500 103,500 780,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share. Mar. 12 Sold all of the treasury shares for $21 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $20 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31.

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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I am stuck on June 30th. Declared a five percent stock divided on all outstanding shares of common sotck. The market value of the stock was $19 per share. 

I included screenshots of the whole thing. 

To figure this out I thought we had to take all stocks issued which was 60,000 and then another 15,000 equalling 75,000 then multiply 75,000 by $19 then multiply by .05. 

Im not sure what I am doing wrong. Can you point me in the right direction please.

BusinessCourse A Return to course H My Subscriptions Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $4 par value, 300,000 shares authorized, 60,000 shares 240,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 360,000 From treasury stock 22,500 382.500 Retained earnings 261,000 883.500 Less: Treasury stock (6,000 shares) at cost 103,500 Total Stockholdersâ€TM Equity 780,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share. Mar. 12 Sold all of the treasury shares for $21 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $20 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders†equity. Net income for the year is $255,750. Journal Entries Statement of Stockholders' Equity Support
Transcribed Image Text:BusinessCourse A Return to course H My Subscriptions Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $4 par value, 300,000 shares authorized, 60,000 shares 240,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 360,000 From treasury stock 22,500 382.500 Retained earnings 261,000 883.500 Less: Treasury stock (6,000 shares) at cost 103,500 Total Stockholdersâ€TM Equity 780,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share. Mar. 12 Sold all of the treasury shares for $21 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $20 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders†equity. Net income for the year is $255,750. Journal Entries Statement of Stockholders' Equity Support
BusinessCourse A Return to course H My Subscriptions Jan.8 Cash 240,000 v $ Common Stock 60,000 v Paid-in-Capital in Excess of Par Value 180,000 v Issued shares of common stock. Mar.12 Cash 126,000 v Treasury Stock 103,500 v Paid-in-Capital from Treasury Stock 22,500 v Sold shares of treasury stock. Jun.30 Stock Dividends 55.200 x Stock Dividend Distributable 60,000 x Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul.10 Stock Dividend Distributable 67,500 x Common Stock Issued shares of common stock declared as dividend. Oct.7 Treasury Stock 50,000 v Cash 50,000 v Purchased shares of common stock for treasury. Dec.18 Cash Dividends Dividends Payable Declared cash dividend. Dec.31 Income Summary 255.750 v Retained earnings 255,750 v To close the income summary account. Dec.31 Retained earnings Stock dividends Cash Dividends To close the dividend accounts. Support
Transcribed Image Text:BusinessCourse A Return to course H My Subscriptions Jan.8 Cash 240,000 v $ Common Stock 60,000 v Paid-in-Capital in Excess of Par Value 180,000 v Issued shares of common stock. Mar.12 Cash 126,000 v Treasury Stock 103,500 v Paid-in-Capital from Treasury Stock 22,500 v Sold shares of treasury stock. Jun.30 Stock Dividends 55.200 x Stock Dividend Distributable 60,000 x Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul.10 Stock Dividend Distributable 67,500 x Common Stock Issued shares of common stock declared as dividend. Oct.7 Treasury Stock 50,000 v Cash 50,000 v Purchased shares of common stock for treasury. Dec.18 Cash Dividends Dividends Payable Declared cash dividend. Dec.31 Income Summary 255.750 v Retained earnings 255,750 v To close the income summary account. Dec.31 Retained earnings Stock dividends Cash Dividends To close the dividend accounts. Support
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