163. The following account balances appear on the balance sheet of Osgood Industries:
Common Stock 300,000 shares authorized, $100 par: $10,000,000
PaidIn Capital in Excess of Par—Common Stock: $2,000,000
Retained Earnings: $45,000,000

The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share.

Required:
1- Journalize the entries to record
a. the declaration of the dividend, capitalizing an amount equal to market value
b. the issuance of the stock certificates

2- Determine the following amounts before the stock dividend was declared:
a. Total paid-in capital
b. Total retained earnings
c. Total stockholders’ equity

3- Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year:
a. Total paid-in capital
b. Total retained earnings
c. Total stockholders’ equity

Question

163.	The following account balances appear on the balance sheet of Osgood Industries: 
Common Stock 300,000 shares authorized, $100 par:  $10,000,000
Paid­In Capital in Excess of Par—Common Stock:  $2,000,000
Retained Earnings:  $45,000,000

The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share.

Required:
1-	Journalize the entries to record
a.	the declaration of the dividend, capitalizing an amount equal to market value
b.	the issuance of the stock certificates

2-	Determine the following amounts before the stock dividend was declared:
a.	Total paid-in capital
b.	Total retained earnings
c.	Total stockholders’ equity

3-	Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year:
a.	Total paid-in capital
b.	Total retained earnings
c.	Total stockholders’ equity

Quizplus · Accepted Answer

The Answer of 163.	The following account balances appear on the balance sheet of Osgood Industries: 
Common Stock 300,000 shares authorized, $100 par:  $10,000,000
Paid­In Capital in Excess of Par—Common Stock:  $2,000,000
Retained Earnings:  $45,000,000

The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share.

Required:
1-	Journalize the entries to record
a.	the declaration of the dividend, capitalizing an amount equal to market value
b.	the issuance of the stock certificates

2-	Determine the following amounts before the stock dividend was declared:
a.	Total paid-in capital
b.	Total retained earnings
c.	Total stockholders’ equity

3-	Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year:
a.	Total paid-in capital
b.	Total retained earnings
c.	Total stockholders’ equity

163 the Following Account Balances Appear on the Balance Sheet of Osgood