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132PROBLEMs14

# 132PROBLEMs14 - PROBLEM 14-1B(a Jan 15 200,000 Feb 15...

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PROBLEM 14-1B (a) Jan. 15 Retained Earnings (200,000 X \$1) ......... 200,000 Dividends Payable .......................... 200,000 Feb. 15 Dividends Payable .................................. 200,000 Cash .................................................. 200,000 Apr. 15 Retained Earnings (20,000 X \$15) ......... 300,000 Common Stock Dividends Distributable (20,000 X \$5) .......... 100,000 Paid-in Capital in Excess of Par Value (20,000 X \$10) ............. 200,000 May 15 Common Stock Dividends Distributable ........................................ 100,000 Common Stock (20,000 X \$5) ......... 100,000 July 1 Memo—two-for-one stock split increases the number of shares outstanding to 440,000, or (220,000 X 2) and reduces par value to \$2.50 per share. Dec. 1 Retained Earnings (440,000 X \$.50) ....... 220,000 Dividends Payable ........................... 220,000 31 Income Summary .................................... 250,000 Retained Earnings ........................... 250,000 (b)

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Common Stock Date Explanation Ref. Debit Credit Balance Jan. 1 May 15 July 1 Balance 2 for 1 stock split— new par value = \$2.50 100,000 1,000,000 1,100,000
PROBLEM 14-1B (Continued) Common Stock Dividends Distributable Date Explanation Ref. Debit Credit Balance Apr. 15 May 15 100,000 100,000 100,000 0 Paid-in Capital in Excess of Par Value Date Explanation Ref. Debit Credit Balance Jan. 1 Apr. 15 Balance 200,000 200,000 400,000 Retained Earnings Date Explanation Ref. Debit Credit Balance Jan. 1 15 Apr. 15 Dec. 1 31 Balance Cash dividends Stock dividends Cash dividends Net income 200,000 300,000 220,000 250,000 840,000 640,000 340,000 120,000 370,000 (c) WEISER CORPORATION Balance Sheet (Partial) December 31, 2010

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