Homework SourseThe following data were taken from the balance sheet account
The following data were taken from the balance sheet accounts of Sunland Corporation on December 31, 2016.
Prepare the required journal entries for the following unrelated items. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts.)
please show work (:
| Current assets | $530,000 | |
| Debt investments | 651,000 | |
| Common stock (par value $10) | 502,000 | |
| Paid-in capital in excess of par | 152,000 | |
| Retained earnings | 826,000 |
Solution
No of shares outstanding = 502,000/10 = 50200
| S No | Journal | Debit | Credit |
| a | Retained Earning (50200*6%*34) | 102408 | |
| Common Stock dividend distributable (50200*6%*10) | 30120 | ||
| Paid in Capital (Bal. Fig.) | 72288 | ||
| b | No entry to record a stock spilt | ||
| c | Investment in bonds (124000-104000) | 20000 | |
| Gain on Investments | 20000 | ||
| Retained Earnings | 124000 | ||
| Property dividend payable | 124000 | ||
| Property dividend payable | 124000 | ||
| Investment in bonds | 124000 |
