Redding Company reported the following in the statement of shareholders' equity at 1/1/20: Common stock, $10...

 

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Redding Company reported the following in the statement of shareholders' equity at 1/1/20: Common stock, $10 par value, authorized 200,000 shares, issued 75,000 750,000 1,620,000 Additional paid-in capital Retained earnings 998,400 3,368,400 Less: treasury stock, at cost, 9,000 shares (108,000) Total shareholders' equity $ 3,260,400 The following events occurred in 2020: 3/1 2,000 shares of treasury stock were sold for $40,000. 6/15 A 30% stock dividend was declared when the market value of the stock was $33. The shares will be distributed on 7/31 to holders of record on 7/1. 9/9 10,000 of previously unissued common stock sold for $33.50 per share. 10/1 A 2-for-1 stock split resulted in the common stock's par value being halved. 12/15 A cash dividend of $.50 per share was declared. 12/31 Net income for 2020 was $345,600. Required: (a) Prepare the journal entries required for the 2020 events affecting equity. (b) Prepare the equity section of the balance sheet at 12/31/20. $ Redding Company reported the following in the statement of shareholders' equity at 1/1/20: Common stock, $10 par value, authorized 200,000 shares, issued 75,000 750,000 1,620,000 Additional paid-in capital Retained earnings 998,400 3,368,400 Less: treasury stock, at cost, 9,000 shares (108,000) Total shareholders' equity $ 3,260,400 The following events occurred in 2020: 3/1 2,000 shares of treasury stock were sold for $40,000. 6/15 A 30% stock dividend was declared when the market value of the stock was $33. The shares will be distributed on 7/31 to holders of record on 7/1. 9/9 10,000 of previously unissued common stock sold for $33.50 per share. 10/1 A 2-for-1 stock split resulted in the common stock's par value being halved. 12/15 A cash dividend of $.50 per share was declared. 12/31 Net income for 2020 was $345,600. Required: (a) Prepare the journal entries required for the 2020 events affecting equity. (b) Prepare the equity section of the balance sheet at 12/31/20. $

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Requirement a Journal entries Date 1Mar 15Jun Account titles and e... View the full answer