E13-25

Requirement 1
Date Accounts and Explanation Debit Credit
Apr. 30 Retained Earnings ($11 per share × 530 × 0.10) 583
Common Stock Dividend Distributable ($1 per share × 530 × 0.10) 53
Paid-In Capital in Excess of Par—Common ($583 − $53) 530
Declared a 10% stock dividend.

May 15 Common Stock Dividend Distributable ($1 per share × 530 × 0.10) 53
Common Stock—$1 Par Value 53
Issued 10% stock dividend.

Requirement 2

PONDSIDE OCCUPATIONAL THERAPY, INC.

Balance Sheet (Partial)
April 30, 2104

Stockholders’ Equity
Paid-In Capital:
Common Stock—$1 Par Value; 1,250 shares authorized, 583 shares
issued and outstanding $ 583
Paid-In Capital in Excess of Par—Common 2,650
Total Paid-In Capital 3,233
Retained Earnings 120,417
Total Stockholders' Equity $ 123,650

E13-30

Date Accounts and Explanation Debit Credit

Mar. 4 Cash ($18 per share × 22,000 shares) 396,000

Common Stock ($1 per share × 22,000 shares) 22,000
Paid-In Capital in Excess of Par—Common ($396,000 − $22,000) 374,000
Issued common stock for cash.

May 22 Treasury Stock—Common ($11 per share × 1,400 shares) 15,400

Cash 15,400
Purchased treasury stock.

Sep. 22 Cash ($24 per share × 500 shares) 12,000

Treasury Stock—Common ($11 cost per share × 500 shares) 5,500
Paid-In Capital from Treasury Stock Transactions ($13 × 500 shares) 6,500
Sold treasury stock with cost of $11 per share.
Oct. 14 Cash ($9 per share × 900 shares) 8,100
Paid-In Capital from Treasury Stock Transactions 1,800
Treasury Stock—Common ($11 cost per share × 900 shares) 9,900
Sold treasury stock with cost of $11 per share.

P13-44B
Requirement 1
Date Accounts and Explanation Debit Credit

Jan. 16 Retained Earnings 55,200

Dividends Payable—Preferred (6% × $95 × 1,000
shares) 5,700
Dividends Payable—Common ($0.55 × 90,000
shares) 49,500
Declared cash dividend.

Feb. 15 Dividends Payable—Preferred 5,700

Dividends Payable—Common 49,500
Cash 55,200
Paid cash dividend.

Jun. 10 No entry

Jul. 30 Retained Earnings ($5 per share × 180,000 shares

(number of shares after split) × 0.30) 270,000
Common Stock Dividend Distributable ($5 per share
× 180,000 shares × 0.30) 270,000
Declared a 30% stock dividend.

Aug. 15 Common Stock Dividend Distributable 270,000

Common Stock—$5 Par Value 270,000
Issued 30% stock dividend.

Oct. 26 Treasury Stock—Common ($10 per share × 3,000

shares) 30,000
Cash 30,000
Purchased treasury stock.

Nov. 8 Cash ($11 per share × 1,500 shares) 16,500

Treasury Stock—Common ($10 cost per share ×
1,500 shares) 15,000
Paid-In Capital from Treasury Stock Transactions
($1 × 1,500 shares) 1,500
Sold treasury stock with cost of $10 per share.

Nov. 30 Cash ($7 per share × 700 shares) 4,900

 Paid-In Capital from Treasury Stock Transactions 1,500
Retained Earnings ($7,000 – $4,900 – $1,500) 600
Treasury Stock—Common ($10 cost per share × 700
shares) 7,000
Sold treasury stock with cost of $10 per share.

P13-44B, cont.
Requirement 2

DEARBORN MANUFACTURING CO.

Balance Sheet (Partial)
December 31, 2014

Stockholders’ Equity
Paid-In Capital:
Noncumulative Preferred Stock—6%, $95 Par Value; 4,000
shares authorized, 1,000 shares issued and outstanding $ 95,000
Common Stock—$5 Par Value; 400,000 shares authorized,
234,000 shares issued and 233,200 outstanding 1,170,000
Total Paid-In Capital
1,265,000
Retained Earnings 2,020,000
Treasury Stock (8,000)
Total Stockholders’ Equity $ 3,277,000

Jan. 16 Shares of Common Stock 90,000

Jun. 10 Shares after stock split 180,000
Jul. 30 Shares after stock dividend—30% 234,000