Reference no: EM132718284
The balance sheet of Hunter, Inc., included the following shareholders' equity accounts at December 31, 2019:
Paid-in capital: Dollar amounts
Common stock,472,600 shares 472,600
Paid-in capital-excess of par, common 2 865,000
Retained earnings 4,915,000
Treasury stock, at cost; 2,400 common shares (36,600)
Total shareholders' equity 8,216,000
Problem 1: During 2020, several events and transactions affected the retained earnings of Hunter. Prepare the appropriate entries for the following events. Show all work for full credit.
a. On March 3 the board of directors declared and distributed a property dividend of 312,000 shares of Baruch International common stock that Hunter had purchased in January as an investment (book value: $962,000). The investment shares had a fair market value of $4.
b. On May 3 a 30% common stock dividend was declared and distributed. The market value of the common stock was $12 per share. (Hint: stock dividends are declared on outstanding shares only).
c. On July 5 a 5% common stock dividend was declared and distributed. The market value of the common stock was $14 per share.