On January 1, 2020, Kingbird Corporation had $2,090,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,180,000. The company issued 220,000 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, 2020, payable on January 15, 2021. The market value of Kingbird Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2020 was $515,000. (a1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1 Cash Dec. 15 く Common Stock Paid-in Capital in Excess of Par-Common Stock Debit 2640000 Credit 2200000 440000
On January 1, 2020, Kingbird Corporation had $2,090,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,180,000. The company issued 220,000 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, 2020, payable on January 15, 2021. The market value of Kingbird Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2020 was $515,000. (a1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1 Cash Dec. 15 く Common Stock Paid-in Capital in Excess of Par-Common Stock Debit 2640000 Credit 2200000 440000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...
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![On January 1, 2020, Kingbird Corporation had $2,090,000 of $10 par value common stock outstanding that was issued at par and
retained earnings of $1,180,000. The company issued 220,000 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, 2020, payable on January 15, 2021.
The market value of Kingbird Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income
for 2020 was $515,000.
(a1)
Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
July 1
Cash
Dec. 15 く
Common Stock
Paid-in Capital in Excess of Par-Common Stock
Debit
2640000
Credit
2200000
440000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f8e5346-a05f-464a-a570-52c9d6cdaef8%2Fa31aec16-0f2f-4523-8ca7-08f98039483c%2Fgo1o1r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2020, Kingbird Corporation had $2,090,000 of $10 par value common stock outstanding that was issued at par and
retained earnings of $1,180,000. The company issued 220,000 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, 2020, payable on January 15, 2021.
The market value of Kingbird Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income
for 2020 was $515,000.
(a1)
Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
July 1
Cash
Dec. 15 く
Common Stock
Paid-in Capital in Excess of Par-Common Stock
Debit
2640000
Credit
2200000
440000
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