Question 11 On January 1 2017 Raleish Corporation had 200000

Question 11

On January 1, 2017, Raleish Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 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, 2017, payable on January 15, 2018. The market value of Raleish Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2017 was $500,000.

Date

Account Titles and Explanation

Debit

Credit

July 1

Dec. 15

Question 11

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Journal entry :

Date	accounts & explanation	debit	credit
July 1	Cash (200000*12)	2400000
	Common Stock		2000000
	paid in capital in excess of par value-Common Stock		400000
	(To record issue common stock)

Dec 15	Stock dividend (220000015%15)	4950000
	Common Stock dividend distributable		3300000
	paid in capital in excess of par value-Common Stock		1650000
	(To record Stock dividend declared)

Question 11 On January 1, 2017, Raleish Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,

Question 11 On January 1 2017 Raleish Corporation had 200000

Solution

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