On January 1, 2014, Penton Corporation had $2,000,000 of $10 par value ordinary shares outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 ordinary shares at $13 per share on July 1. On December 15, the board of directors declared a 10% share dividend to shareholders of record on December 31, 2014, payable on January 15, 2015. The market value of Penton Corporation shares was $15 per share on December 15 and $16 per share on December 31. Net income for 2014 was $500,000.
Instructions
(1) Journalize the issuance of shares on July 1 and the declaration of the share dividend on December 15.
(2) Prepare the equity section of the statement of financial position for Penton Corporation at December 31, 2014.

Question

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The Answer of On January 1, 2014, Penton Corporation had $2,000,000 of $10 par value ordinary shares outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 ordinary shares at $13 per share on July 1. On December 15, the board of directors declared a 10% share dividend to shareholders of record on December 31, 2014, payable on January 15, 2015. The market value of Penton Corporation shares was $15 per share on December 15 and $16 per share on December 31. Net income for 2014 was $500,000.
Instructions
(1) Journalize the issuance of shares on July 1 and the declaration of the share dividend on December 15.
(2) Prepare the equity section of the statement of financial position for Penton Corporation at December 31, 2014.

On January 1, 2014, Penton Corporation Had $2,000,000 of $10