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I really only need help with number 4 please.

Below is the stockholders'equity section of the balance sheet for RE Company ai 12/31/xO:

COMMON STOCK ($10 PAR) PIC>PAR ON COMMON STOCK RETAINED EARNINGS:

APPROPRIATED FOR PLANT EXPANSION APPROPRIATED - BOND COVENANT UNAPPROPRIATED

TOTAL STOCKHOLDERS'EQUITY The maximum dividend that RE Company can pay

1,000,000 1,10! ,DOO 3,05t',DQ0

$1,900,000 2,400,000

5,150.000 $9,450,000

1

. Component of Stockholders' Equity	Available for Dividends? Yes/No-Why?	Amount Available for Dividends
Common Stock
PIC>Paron CS
R/E - Appropriated for Plant Expansion
R/E - Appropriated for Bond Covenant
R/E - Unappropriated
Total Available (Maximum Potential Dividend)

2.

The maximum non-liquidating dividend RE Company can pay is

Available for Dividends	Amount available for non-liquidating Dividends
PIC>Paron CS
R/E - Appropriated for Plant Expansion
R/E - Unappropriated
Total Available for non-liquidating dividends

3. a.

b.

Record the following transactions and events that occurred during 20x1 : Declared a dividend of $1.50 per share

Retained Earnings Dividends Payable

Paid the above dividend Dividends Payable

Cash

ACC 302 - Retained Earnings

c.

Declared a dividend to give stockholders stock owned by RE Company in QBM Co. stock is on the books of RE Company at $620,000. The market value of the QBM stock is $780,000.

Investment in QBM Stock Gain on QBM Stock

Retained Earnings Property Dividend Distributed

Declared a 10% stock dividend. The market price of the stock is $47.

Retained Earnings CS Dividend Distributable

Paid-in Capital in Excess of Par-CS

Appropriated $30,000 for plant expansion

Retained Earnings RE - Appropriated for Plant Expansion

Eliminated the appropriation for bonds RE - Appropriate for Bonds Retained Earnings

Declared a 30% stock dividend. The market price of the stock is $43. For simplicity, ignore the previous declaration of the 10% stock dividend.

Retained Earnings CS Dividend Distributable

d.

e.

f.

g.

h.

i.

Declared a 2-for-1 stock split.

4.

A prior period adjustment increased ACCUMULATED DEPRECIATION (ignore tax effect) by $22,000.

Retained Earnings Accumulated Depreciation

Complete This Exercise at Home & Turn in Next Class Period for a Grade Prepare a Statement of Retained Earnings at 12/31/x1. Net income was $560,000.

ACC 302 - Retained Earnings

5. a.

Make journal entries to

Issue the property dividend. The value of the QBM stock at issuance to RE stockholders is $765,000.

b.

Issue the 10% stock dividend. The market price of the stock is $44.

c.

Issue the 30% stock dividend

d.

Issue the 2-for-1 split.

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