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The stockholders' equity for Sweet TreatsSweet Treats Corporation on JuneJune 1212, 20172017, follows Stockholders' Equity
Common stock, $0.75 par, 3,000,000 shares
	authorized, 500,000 shares issued	$375,000
Paid-in capital in excess of parcommon		1,076,267
Retained earnings		7,111,000
Accumulated other comprehensive income (loss)		-210,000
	Total stockholders' equity	$8,352,267

1.	Journalize the declaration and distribution of the stock dividend.
2.	Prepare the stockholders' equity section of the balance sheet after the stock dividend.
3.	Why is total stockholders' equity unchanged by the stock dividend?
4.	Suppose Sweet TreatsSweet Treats had a cash balance of $ 620 comma 000$620,000 on JuneJune1313, 20172017. What is the maximum amount of cash dividends Sweet TreatsSweet Treats can declare? Requirement 1. Journalize the declaration and distribution of the 55% stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit June 12 Requirement 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet. Use parentheses or a minus sign for numbers to be subtracted.) Balance Sheet (Partial) Stockholders' Equity: $ par, shares shares Total stockholders' equity Requirement 3. Why is total stockholders' equity unchanged by the stock dividend? The stock dividend did not change total stockholders' equity because the company gave its shareholders a promissory note cash no assets .The company merely agreed to pay later. issued dividend checks totaling $375,000. transferred $375,000 from Retained Earnings to Common Stock and Paid-in Capital in Excess of Par. Requirement 4. Suppose STST had a cash balance of $ 620 comma 000$620,000 on JuneJune 1313, 20172017. What is the maximum amount of cash dividends STST can declare? STST's maximum cash dividends are unlimited. cannot exceed the balance in the Cash account, $620,000 cannot exceed the balance in the Common Stock account, $393,750 cannot exceed the balance in the Retained Earnings account, $6,736,000 .

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