As of December 31, 2017, the equity portion of Benton Corporation's balance sheet is as follows:

Shareholder Equity

Common Stock, $5 face value, 2,000,000 shares authorized              $3,000,000

Issued - 600,000 shares                                                                        850.000$

Paid-in capital exceeding the percentage of                                        4.500.000

Retained earning                                                                                    8.350.000

The following event occurred in 2018:

1. Jan. 5: 45,000 ordinary shares, authorized and non-issued, sold at $8 per share

2. Jan. 16: Declared on Feb. 5 a cash dividend of 20 cents per share payable on Feb. 15 to registered shareholders.

3. February 10: 60,000 authorized and non-issued common shares are sold at $12 per share.

5. March 1st: 30% stock dividend announced and issued. Fair value per share is currently $15.

6. April 1: A two-to-one stock split was carried out. The par value of the stock would be reduced to $2.50 per share. Fair value at March 31 was $18 per share.

7. July 1st: 15% stock dividend announced and issued. Fair value is currently $10 per share.

10. Announced 20 cents cash dividend per share, payable on September 1 to registered shareholders on August 21,

Instructions: 

Prepare journal entries for 2015 and prepare a comprehensive equity section on the balance sheet.

Answer rating: 100% (QA)

Journal Entries January 5 Cash 360000 Common Stock 5 par value 45000 Paidin Capital in Excess of Par ... View the full answer