On January 1, 2020, Tamarisk Corporation had $2,180,000 of $10 par value common stock outstanding that...

 

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On January 1, 2020, Tamarisk Corporation had $2,180,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,090,000. The company issued 215,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021. The market value of Tamarisk Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2020 was $540,000. (a1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are incl automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles m and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) On January 1, 2020, Tamarisk Corporation had $2,180,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,090,000. The company issued 215,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2020, payable on January 15, 2021. The market value of Tamarisk Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2020 was $540,000. (a1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (Credit account titles are incl automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles m and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)

Answer rating: 100% (QA)

a1 Journal Entries July 1 Cash 2580000 Common Stock 2150000 Additional Paidin Capital 430000 Note Th... View the full answer