The Following Account Balances Appear on the Balance Sheet of Osgood

question 74

Essay

The following account balances appear on the balance sheet of Osgood Industries:
Common Stock (300,000 shares authorized, $100 par): $10,000,000
Paid-In Capital in Excess of Par-Common Stock: $2,000,000
Retained Earnings: $45,000,000
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The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share.
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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:

Self-actualization

Self-actualization is the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

External Rewards

Benefits or incentives provided by external sources, such as money, praise, or recognition, to motivate behavior.

Self-determination

The concept of individuals having the freedom and ability to make choices and control their own lives.

Competence Stage

refers to one of the levels in the psychological theory of skill acquisition, where an individual becomes consciously skilled at a task.