Windsor, Inc.'s stockholders equity section at December 31, 2019, appears below: Stockholder's equity Paid-in capital Common stock, $10 par, 60,000 outstanding Paid-in capital in excess of par Total paid-in capital Retained earnings $600,000 179,000 $779,000 152,000 Total stockholder's equity $931,000 On June 30, 2020, the board of directors of Windsor, Inc. declared a 15% stock dividend, payable on July 31, 2020, to stockholders of record on July 15, 2020. The fair value of Windsor, Inc.'s stock on June 30, 2020, was $16. On December 1, 2020, the board of directors declared a 2-for-1 stock split effective December 15, 2020. Windsor, Inc.'s stock was selling for $18 on December 1, 2020, before the stock split was declared. Par value of the stock was adjusted. Net income for 2020 was $231,000 and there were no cash dividends declared. - (a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order in which they must have occurred.) Date Account Titles and Explanation Debit Credit
Windsor, Inc.'s stockholders equity section at December 31, 2019, appears below: Stockholder's equity Paid-in capital Common stock, $10 par, 60,000 outstanding Paid-in capital in excess of par Total paid-in capital Retained earnings $600,000 179,000 $779,000 152,000 Total stockholder's equity $931,000 On June 30, 2020, the board of directors of Windsor, Inc. declared a 15% stock dividend, payable on July 31, 2020, to stockholders of record on July 15, 2020. The fair value of Windsor, Inc.'s stock on June 30, 2020, was $16. On December 1, 2020, the board of directors declared a 2-for-1 stock split effective December 15, 2020. Windsor, Inc.'s stock was selling for $18 on December 1, 2020, before the stock split was declared. Par value of the stock was adjusted. Net income for 2020 was $231,000 and there were no cash dividends declared. - (a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order in which they must have occurred.) Date Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Windsor, Inc.'s stockholders' equity section at December 31, 2019, appears below:
Stockholder's equity
Paid-in capital
Common stock, $10 par, 60,000
outstanding
$600,000
Paid-in capital in excess of par
179,000
Total paid-in capital
Retained earnings
$779,000
152,000
Total stockholder's equity
$931,000
On June 30, 2020, the board of directors of Windsor, Inc. declared a 15% stock dividend, payable on July 31, 2020, to stockholders of record on July 15, 2020. The fair value of Windsor, Inc.'s stock on June 30, 2020, was $16.
On December 1, 2020, the board of directors declared a 2-for-1 stock split effective December 15, 2020. Windsor, Inc.'s stock was selling for $18 on December 1, 2020, before the stock split was declared. Par value of the stock was adjusted. Net income for 2020 was
$231,000 and there were no cash dividends declared.
v (a)
Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts. Record journal entries in the order in which they must have occurred.)
Date
Account Titles and Explanation
Debit
Credit
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