Common stock and its issue: Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”. Cash Dividends: The dividends on common stock can defined as the return for the common stock to the common stock holders. The net income is distributed to common stock holders in the form of dividends. Stock Dividends: Stock dividends can be defined as when the shareholders are given additional number of stocks in place of the cash dividends. Requirement 1 To prepare: Journal entry for declaration and distribution of the stock dividend

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Answer 1

Question

Chapter 13, Problem E13.28E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Cash Dividends:

The dividends on common stock can defined as the return for the common stock to the common stock holders. The net income is distributed to common stock holders in the form of dividends.

Stock Dividends:

Stock dividends can be defined as when the shareholders are given additional number of stocks in place of the cash dividends.

Requirement 1

To prepare:

Journal entry for declaration and distribution of the stock dividend

To determine

Requirement 2

To prepare:

Journal entry for declaration and distribution of the cash dividend

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Fairfield Company's payroll costs for the most recent month are summarized here: Item Hourly labor unges Description 920 hours $27 per hour 190 hours for Job 101 340 hours for Job 102 Factory supervision Production engineer Factory Janitorial work Selling, general, and administrative salaries Total payroll costs Required: 390 hours for Job 103 Total Cost $ 5,130 9,180 10,530 $ 24,840 4,350 7,100 1,200 8,800 $ 46,298 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. View transaction list Journal entry worksheet A B Record Fairfield Company's payroll costs to be paid at a later date. Note Enter debits before credits. S.No Date 1 Account Title Debit Credit

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L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: Now assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots?

Answer 2

Question

Chapter 13, Problem E13.28E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Cash Dividends:

The dividends on common stock can defined as the return for the common stock to the common stock holders. The net income is distributed to common stock holders in the form of dividends.

Stock Dividends:

Stock dividends can be defined as when the shareholders are given additional number of stocks in place of the cash dividends.

Requirement 1

To prepare:

Journal entry for declaration and distribution of the stock dividend

To determine

Requirement 2

To prepare:

Journal entry for declaration and distribution of the cash dividend

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 13, Problem E13.28E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Cash Dividends:

The dividends on common stock can defined as the return for the common stock to the common stock holders. The net income is distributed to common stock holders in the form of dividends.

Stock Dividends:

Stock dividends can be defined as when the shareholders are given additional number of stocks in place of the cash dividends.

Requirement 1

To prepare:

Journal entry for declaration and distribution of the stock dividend

To determine

Requirement 2

To prepare:

Journal entry for declaration and distribution of the cash dividend

Expert Solution & Answer

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Answer 4

Question

Chapter 13, Problem E13.28E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Cash Dividends:

The dividends on common stock can defined as the return for the common stock to the common stock holders. The net income is distributed to common stock holders in the form of dividends.

Stock Dividends:

Stock dividends can be defined as when the shareholders are given additional number of stocks in place of the cash dividends.

Requirement 1

To prepare:

Journal entry for declaration and distribution of the stock dividend

To determine

Requirement 2

To prepare:

Journal entry for declaration and distribution of the cash dividend

Expert Solution & Answer

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See solution

Answer 5

Chapter 13, Problem E13.28E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Cash Dividends:

The dividends on common stock can defined as the return for the common stock to the common stock holders. The net income is distributed to common stock holders in the form of dividends.

Stock Dividends:

Stock dividends can be defined as when the shareholders are given additional number of stocks in place of the cash dividends.

Requirement 1

To prepare:

Journal entry for declaration and distribution of the stock dividend

To determine

Requirement 2

To prepare:

Journal entry for declaration and distribution of the cash dividend

Answer 6

Chapter 13, Problem E13.28E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Cash Dividends:

The dividends on common stock can defined as the return for the common stock to the common stock holders. The net income is distributed to common stock holders in the form of dividends.

Stock Dividends:

Stock dividends can be defined as when the shareholders are given additional number of stocks in place of the cash dividends.

Requirement 1

To prepare:

Journal entry for declaration and distribution of the stock dividend

Answer 7

Chapter 13, Problem E13.28E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Cash Dividends:

The dividends on common stock can defined as the return for the common stock to the common stock holders. The net income is distributed to common stock holders in the form of dividends.

Stock Dividends:

Stock dividends can be defined as when the shareholders are given additional number of stocks in place of the cash dividends.

Requirement 1

To prepare:

Journal entry for declaration and distribution of the stock dividend

Answer 8

To determine

Requirement 2

To prepare:

Journal entry for declaration and distribution of the cash dividend

Answer 9

To determine

Requirement 2

To prepare:

Journal entry for declaration and distribution of the cash dividend

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 13 - Prob. 1QC Ch. 13 - Prob. 2QC Ch. 13 - Prob. 3QC Ch. 13 - Prob. 4QC Ch. 13 - Prob. 5QC Ch. 13 - Prob. 6QC Ch. 13 - Prob. 7QC Ch. 13 - Prob. 8QC Ch. 13 - Prob. 9QC Ch. 13 - Prob. 10QC

Requirement 2 To prepare: Journal entry for declaration and distribution of the cash dividend

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Chapter 13 Solutions

Requirement 2

To prepare:

Journal entry for declaration and distribution of the cash dividend