On January 1, 2014, the Black 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 140,000 shares of common stock at $15 per share on July 1. On December 15, the board of directors declared a 10% stock dividend to stockholders of record on December 31, 2014, payable on January 15, 2015. The market value of Black Corporation stock was $17 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 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 Black Corporation at December 31, 2014.

Question

On January 1, 2014, the Black 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 140,000 shares of common stock at $15 per share on July 1. On December 15, the board of directors declared a 10% stock dividend to stockholders of record on December 31, 2014, payable on January 15, 2015. The market value of Black Corporation stock was $17 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 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 Black Corporation at December 31, 2014.

Quizplus · Accepted Answer

The Answer of On January 1, 2014, the Black 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 140,000 shares of common stock at $15 per share on July 1. On December 15, the board of directors declared a 10% stock dividend to stockholders of record on December 31, 2014, payable on January 15, 2015. The market value of Black Corporation stock was $17 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 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 Black Corporation at December 31, 2014.

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