Question & Answer: The stockholders' equity section of Stuffgoose Corporation's balance sheet as of December 31, 2017 is as follows: Stockholders' Equ…..

The stockholders’ equity section of Stuffgoose Corporation’s balance sheet as of December 31, 2017 is as follows: Stockholders’ Equity Common stock, $6 par value; authorized, 3,000,000 shares; issued, 600,000 shares $3,600,000 Paid-in capital in excess of par 940,000 Retained earnings 5,400,000 $9,940,000 The following events occurred during 2018:

1. Jan. 5 45,000 shares of authorized and unissued common stock were sold for $13 per share.

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2. Jan. 16 Declared a cash dividend of 17 cents per share, payable February 15 to stock-holders of record on February 5.

3. Feb. 10 60,000 shares of authorized and unissued common stock were sold for $12 per share.

4. March 1 A 30% stock dividend was declared and issued. Fair value per share is currently $18.

5. April 1 A three-for-one split was carried out. Fair value on March 31 was $18 per share.

6. July 1 A 15% stock dividend was declared and issued. Fair value is currently $10 per share.

7. Aug. 1 A cash dividend of 20 cents per share was declared, payable September 1 to stockholders of record on August 21.

Expert Answer

Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt

5-Jan	Cash Dr.	585,000		45,000 Shares X $13
	To Common Stock		270,000	45,000 Shares X $6
	To Paid in capital in excess of par		315,000	45,000 Shares X $7

16-Jan	Retained Earnings Dr.	109,650		645,000 Shares X $0.17
	To Cash Dividends		109,650

10-Feb	Cash Dr.	720,000		60,000 Shares X $12
	To Common Stock		360,000	60,000 Shares X $6
	To Paid in capital in excess of par		360,000	60,000 Shares X $6

15-Feb	Cash Dividends Dr.	109,650
	To Cash		109,650

1-Mar	Retained Earnings Dr.	3,807,000		705,000 Shares X 30% $18
	To Common Stock		1,269,000	705,000 Shares X 30% $6
	To Paid in capital in excess of par		2,538,000	705,000 Shares X 30% $12


1-Apr	No Entry.
	Only Memo to be issued

1-Jul	Retained Earnings Dr.	1,374,750		916,500 Shares X 15% X $10
	To Common Stock		274,950	916,500 Shares X 15% X $2
	To Paid in capital in excess of par		1,099,800	916,500 Shares X 15% X $8

1-Aug	Retained Earnings Dr.	210,795		1,053,975 Shares X $0.20
	To Cash Dividends		210,795

1-Sep	Cash Dividends Dr.	210,795
	To Cash		210,795

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