The balance sheet of Hunter, Inc., included the following shareholders equity accounts at December 31,...
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Accounting
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 capitalexcess 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
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.
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