Homework Week Eight Chapter 12 Problems Sav Score 0 of 1 pt

Homework: Week Eight: Chapter 12: Problems Sav Score: 0 of 1 pt 6 of 7 (6 complete) HW Score: 66.65%, 4.67 of 7 p P13-45B (similar to) iData Table The balance sheet of Millan Management Consulting, Inc. at December 31, 2015, reported the following stockholders\' equity: EEB (Click the icon to view the stockholders\' equity section of the balance sheet.) During 2016, Millan completed the following selected transactions Click the icon to view the transactions.) Stockholders Equity Paid-In Capilal. Requirements 1 Record the transactions in the general journal. 2. Prepare a retained eamings statement for the year ended December 31, 2016. Assume Millan\'s net income for the year was $84,000 3. Prepaire the stockholders equity section of the balance sheet at December 31, 2016. Common Stock $10 Par Value; 200,000 shares authorized, 15,000 shares issued and outstanding Paid-In Capital in Excess of Par-Common Total Paid-In Capital 150,000 360,000 510,000 63,000 $ 673,000 Requirement 1. Record the transactions in the general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Feb. 6: Declared a 10% stock dividend on the common stock. The market value of Milan\'s stock was $22 per share. Retained Earnings Total Stockholders\' Equity Date Accounts and Explanation Debit Credit Feb. 6 More Info on common s Milan\'s stock was $22 per share. Distributed the stock dividend 15 Jul. 29 Purchased 1,700 shares of treasury stock at $22 per share Nov. 27 Declared a S0.20 per share cash dividend on the common stock Print Done Choose from any list or enter any number in the input fields and then click Check Answer.

Solution

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*Dividends may be debited which is later closed to retained earnings or retained earnings may be directly debited.

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Date	Accounts and Explanation	Debit	Credit
Feb. 6	Retained Earnings [(10% x 15000) x $22]	33000
	Common Stock Dividend Distributable [(10% x 15000) x $10)]		15000
	Paid-in capital in excess of par-common		18000
	(To record declaration of stock dividend)
Feb. 15	Common Stock Dividend Distributable	15000
	Common Stock		15000
	(To record distribution of stock dividend)
Jul. 29	Treasury stock (1700 x $22)	37400
	Cash		37400
	(To record purchase of treasury stock)
Nov. 27	Dividend / Retained Earnings*	2960
	Dividends payable [(15000 + 1500 - 1700) x $0.20]		2960
	(To record declaration of cash dividend)