DC Enterprises Ltd reported stockholders' equity on December 31, 2021 as follows: Common stock, $5 par...

 

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DC Enterprises Ltd reported stockholders' equity on December 31, 2021 as follows: Common stock, $5 par value, 1,000,000 shares authorized, 300,000 shares issued $1,500,000 Additional paid-in capital, common stock 500,000 Retained earnings 2,000,000 The following selected transactions occurred during 2021: Feb. 14 Mar. 14 June 1 June 30 Dec. 1 Dec.31 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 14. The stock was selling for $9 per share. Paid the stock dividend. A cash dividend of $0.20 per share was declared by the board of directors to stockholders of record on June 20, payable June 30. Paid the cash dividend. Borrowed $45,000 cash from a local bank with a 60-day, 9% note payable Record the accrued interest expense. During 2021, the company earned net income of $900,000. Required: 1. Prepare the journal entries to record the above transactions 2. What is the amount of retained earnings as at December 31, 2021? (13 marks) (2 marks) DC Enterprises Ltd reported stockholders' equity on December 31, 2021 as follows: Common stock, $5 par value, 1,000,000 shares authorized, 300,000 shares issued $1,500,000 Additional paid-in capital, common stock 500,000 Retained earnings 2,000,000 The following selected transactions occurred during 2021: Feb. 14 Mar. 14 June 1 June 30 Dec. 1 Dec.31 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 14. The stock was selling for $9 per share. Paid the stock dividend. A cash dividend of $0.20 per share was declared by the board of directors to stockholders of record on June 20, payable June 30. Paid the cash dividend. Borrowed $45,000 cash from a local bank with a 60-day, 9% note payable Record the accrued interest expense. During 2021, the company earned net income of $900,000. Required: 1. Prepare the journal entries to record the above transactions 2. What is the amount of retained earnings as at December 31, 2021? (13 marks) (2 marks)

Answer rating: 100% (QA)

Feb 14 Declared a 5 stock dividend Declaration of stock dividend Retained Earnings 75000 Common Stoc... View the full answer