Skysong Corporation's stockholders' equity section at December 31, 2019 appears below: ...
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Accounting
Skysong Corporation's stockholders' equity section at December 31, 2019 appears below:
Stockholder's equity
Paid-in capital
Common stock, $10 par, 58,000 outstanding
$ 580,000
Paid-in capital in excess of par
150,000
Total paid-in capital
$ 730,000
Retained earnings
155,000
Total stockholder's equity
$ 885,000
On June 30, 2020, the board of directors of Skysong Corporation declared a 20% stock dividend, payable on July 31, 2020, to stockholders of record on July 15, 2020. The fair value of Skysong Corporation's stock on June 30, 2020, was $ 16. On December 1, 2020, the board of directors declared a 2 for 1 stock split effective December 15, 2020. Skysong Corporation's stock was selling for $20 on December 1, 2020, before the stock split was declared. Par value of the stock was adjusted. Net income for 2020 was $ 186,000 and there were no cash dividends declared.
(a)
Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
choose a transaction date 6/30/207/15/207/31/2012/1/2012/15/20
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date 6/30/207/15/207/31/2012/1/2012/15/20
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date 6/30/207/15/207/31/2012/1/2012/15/20
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date 6/30/207/15/207/31/2012/1/2012/15/20
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date 6/30/207/15/207/31/2012/1/2012/15/20
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
Fill in the amount that would appear in the stockholders' equity section for Skysong Corporation at December 31, 2020, for the following items:
1.
Common stock
$ enter a dollar amount
2.
Number of shares outstanding
enter number of shares
3.
Par value per share
$ enter a dollar amount
4.
Paid-in capital in excess of par
$ enter a dollar amount
5.
Retained earnings
$ enter a dollar amount
6.
Total stockholders equity
$ enter a dollar amount
Answer & Explanation
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