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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.
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 | |||
