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Question $2$Not completeMark $3\mathrm{.}20$ out of $4\mathrm{.}00$ Flag question

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Retained Earnings: Transactions and Statement

The stockholders$$ equity accounts of Raymund Corporation as of January $1$ appear below:

Common stock, $$1$ par value, $400,000$ shares authorized;

$160,000$ shares issued and outstanding $$160,000$

Paid$-$in capital in excess of par value $920,000$

Retained earnings $513,000$

During the year, the following transactions occurred:

June $7$ Declared a $20$ percent stock dividend; market value of the common stock was $$15$ per share.

June $28$ Issued the stock dividend declared on June $7.$

Dec. $5$ Declared a cash dividend of $$2\mathrm{.}00$ per share.

Dec. $26$ Paid the cash dividend declared on December $5.$

Required

a$.$ Prepare journal entries to record the foregoing transactions.

General Journal

Date Description Debit Credit

Jun$\mathrm{.}07$ Answer $1$

Stock Dividends

Answer $2$

$480,000$

Answer $3$

$0$

Stock Dividends Distributable Answer $4$

$0$

Answer $5$

$32,000$

Answer $6$

Paid$-$in$-$Capital in Excess of Par Value

Answer $7$

$0$

Answer $8$

$448,000$

Declared stock dividend.

Jun$\mathrm{.}28$ Answer $9$

Stock Dividends Distributable

Answer $10$

$32,000$

Answer $11$

$0$

Common Stock Answer $12$

$0$

Answer $13$

$32,000$

Issued common shares as stock dividend.

Dec$\mathrm{.}05$ Answer $14$

Cash Dividends

Answer $15$

$0$

Answer $16$

$0$

Answer $17$

Dividends Payable

Answer $18$

$0$

Answer $19$

$0$

Declared a cash dividend on common stock outstanding.

Dec$\mathrm{.}26$ Answer $20$

Dividends Payable

Answer $21$

$0$

Answer $22$

$0$

Answer $23$

Cash

Answer $24$

$0$

Answer $25$

$0$

Paid cash dividend declared on Dec. $5.$

b$.$ Prepare a statement of retained earnings. The net income for the year is $$435,000.$

Do not use negative signs with your answers.

RAYMUND CORPORATION

Statement of Retained Earnings

For the Year Ended December $31$

Retained Earnings, January $1$ Answer $26$

$513,000$

Answer $27$

Net Income

Answer $28$

$435,000$

Answer $29$

$948,000$

Answer $30$

Cash Dividends Declared

Answer $31$

$0$

Stock Dividends Declared Answer $32$

$480,000$

Answer $33$

$0$

Answer $34$

Retained Earnings, December $31$

Correct

Mark $1\mathrm{.}00$ out of $1\mathrm{.}00$ Answer $35$

$0$