On January 1, 2010, Penton Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2010, payable on January 15, 2011. The market value of Penton Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2010 was $500,000.
Instructions
(1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15.
(2) Prepare the stockholders' equity section of the balance sheet for Penton Corporation at December 31, 2010.

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2010, Penton Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2010, payable on January 15, 2011. The market value of Penton Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2010 was $500,000.
Instructions
(1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15.
(2) Prepare the stockholders' equity section of the balance sheet for Penton Corporation at December 31, 2010.

On January 1, 2010, Penton Corporation Had $2,000,000 of $10