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BE2 - Homework 2 Brief Exercises BE15-1 Nov.1 Retained...

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Homework # 2 Brief Exercises BE15-1 Nov.1 Retained Earningfs 50,000 Dividents Payable 50,000 (To record declaration of cash dividend) Dec.1 no entry is necessary Dec.31 Dividents Payable 50,000 Cash 50,000 (To record payament of cash dividend) BE15-2 Dec.1 Retained Earnings 96,000 Common Stock Dividentds Distributable 60,000 Paid-in Capital in Excess if Par Value 36,000 (To record declaration of 10% stock dividend) Dec.31 Common Stock Dividentds Distributable 60,000 Common Stock 60,000 (To record issuance of 6000 shares in a stock dividend) BE15-3 Stockholders' equity Paid-in capital Common stock, $10 par 2,000,000 2,200,000 Paid-in capital in excess of par value - 80,000 Total paid-in capital 2,000,000 2,280,000 Retained Earnings 300,000 20,000 Total stockholders' equity 2,300,000 2,300,000 Outstanding shares 200,000 220,000 Book value per share 11,5 10,45 BE15-4 Mount Inc. Retained Earnings Statement For the Year Ending December 31, 2005 Balance, January 1, as reported 220,000 Add: Net income 120,000 340,000 Less: Dividends 85,000 85,000 Balance, December 31 255,000 Before Dividend After Dividend
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BE15-5 Ola Smith Inc. Retained Earnings Statement For the year 2005 Balance, January 1, as reported 800,000 Correction for overstatement of net income in prior period (depreciation error)
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