Question: On January 1, Metlock, Inc. had 130000 shares of $ 10 par value common stock outstanding. On March 17 the company declared a 5 %

On January 1, Metlock, Inc. had 130000 shares of $10 par value common stock outstanding. On March 17 the company declared a 5% stock dividend to stockholders of record on March 20. Market value of the stock was $13 on March 17. The stock was distributed on March 30. The entry to record the transaction of March 30 would include a

debit to Common Stock Dividends Distributable for $65000.

credit to Paid-in Capital in Excess of Par Value for $19500.

credit to Cash for $65000.

debit to Stock Dividends for $19500.

Step by Step Solution

★★★★★

3.58 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Correct answer debit to Common Stock Dividends Distributable for ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Watts Corporation has 40,000 shares of $10 par value common stock outstanding and retained earnings of $820,000. The company declares a 100% stock dividend. The market price at the declaration is $17...

TSLCorporation had $180,000 of $10 par value common stock outstanding on January 1, 2020, and retained earnings of $220,000 on the same date. During 2020 and 2021, TSL earned net incomes of $190,000...

In 2010, Leppard Inc. issued 1,000 shares of $10 par value common stock for land worth $40,000. (a) Prepare Leppards journal entry to record the transaction. (b) Indicate the effect the transaction...

1) On January 1, Bonita Corporation had 880000 shares of $10 par value common stock outstanding. On March 31, the company declared a 10% stock dividend. Market value of the stock was $15/share. As a...

1 1. Stockholders of a corporation directly elect: Answer a. the president of the corporation. b. the board of directors. c. the treasurer of the corporation. d. all of the employees of the...

1. On January 1, Vermont Corporation had 42,300 shares of $10 par common stock issued and outstanding. All 42,300 shares had been issued in a prior period at $22 per share. On February 1, Vermont...

(Computation of Basic and Diluted EPS) Charles Austin of the controllers office of Thompson Corporation was given the assignment of determining the basic and diluted earnings per share values for the...

Assume that Wal-Mart decided to acquire major retailing rival Target Corporation on January 31, 2010. Targets fiscal year ended on January 30, 2010, but you may assume that the year ends are...

Question 4 of 6 On January 1, Skysong, Inc. had 58,700 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions...

Step 3: Finds (round to 1 decimal place).

Solve and indicate whether the following series are convergent or divergent Ans: Diverges by Limit Comparison Test 0 3 m=1 7" n! Ans: Converges by Integral Test 8 h= n=1 Thus, this diverges by the...

A farmer installed a tank for the purpose of keeping the hot water for his residential house in the farm. The tank is made of mild steel of wall thickness 10 mm and contains water at 90oC. Calculate...

Explain why you chose the specific article? How is it relevant to the current health care landscape? Discuss current event from the perspective of a health care administrator. Document your thoughts...

7. A series of transactions for Ace Repair is given below. Use the chart to show the effect of each of the transactions on assets, liabilities, and owner's equity by placing an x in the appropriate...

(CLO3) Sam and Mike are discussing using a new project management framework. Mike mentions that no matter what the team should always be willing to try new things. Sam asks Mike to focus on the pros,...

Ali bey has a small manufacturing firm at the Organize Sanayi. One of his customers asks him if he could make a new product, called abra-kadabra, for them. Ali bey thinks his company is capable of...

Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. $ 57.30 per unit $ 10.30 per unit $ 7.80 per...

Financial statements have a wide audience of interested stakeholders. Identify two or more financial statement users that are external to the company. Specify two questions for each user identified...

What is the process that guides firms in the recognition of revenue? What does each of the steps mean? How does this process work for a company like Abercrombie & Fitch Co., a clothing retailer? How...

The 2018 and 2017 income statements and balance sheets (asset section only) for Target Corporation follow, along with its footnote describing Target's accounting for property and equipment. Target's...

8. Quantitative research typically relies on the use of hypotheses to drive the research process.

5. The quantitative research model includes five components: research purpose, literature foundation, research questions and research hypotheses, research methods, and validity and reliability.

4. Explain the qualitative research model.