On January 1 2017 Raleish Corporation Had $2000000 of $10

question 43

Essay

On January 1 2017 Raleish Corporation had $2000000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1000000. The company issued 200000 shares of common stock at $12 per share on July 1. On December 15 the board of directors declared a 15% stock dividend to stockholders of record on December 31 2017 payable on January 15 2018. The market value of Raleish Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2017 was $500000.
Instructions
(1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15.
(2) Prepare the stockholders' equity section of the balance sheet for Raleish Corporation at December 31 2017.

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Definitions:

Transportation Costs

Expenses associated with moving goods or individuals from one location to another, including costs related to freight, fuel, and maintenance.

FOB

stands for Free On Board, a term used in shipping indicating that the seller is responsible for goods until they are loaded onto a shipping vessel.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of those involved.

Destination Contract

A contract for the sale of goods where the seller is required to ship the goods to a specific location and title passes to the buyer upon delivery at that location.