163 the Following Account Balances Appear on the Balance Sheet of Osgood

question 119

Essay

163. The following account balances appear on the balance sheet of Osgood Industries:
Common Stock 300,000 shares authorized, $100 par: $10,000,000
Paid­In Capital in Excess of Par—Common Stock: $2,000,000
Retained Earnings: $45,000,000

The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share.

Required:
1- Journalize the entries to record
a. the declaration of the dividend, capitalizing an amount equal to market value
b. the issuance of the stock certificates

2- Determine the following amounts before the stock dividend was declared:
a. Total paid-in capital
b. Total retained earnings
c. Total stockholders’ equity

3- Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year:
a. Total paid-in capital
b. Total retained earnings
c. Total stockholders’ equity

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Definitions:

Time Series

Sequentially ordered points of data recorded over intervals of time, analyzed to understand the underlying patterns for forecasting future trends.

Exponentially Smoothed Values

Values adjusted using exponential smoothing, a technique that reduces the impacts of deviations in data by giving more weight to recent observations.

Biodiesel Sales

Refers to the commercial activity of selling biodiesel, a renewable fuel made from vegetable oils, animal fats, or recycled restaurant greases.

Exponential Smoothing

A technique for smoothing time series data using the exponential window function, commonly used in forecasting.