Answered Essay: The following condensed balance sheet information has been prepared by the controller of

The following condensed balance sheet information has been prepared by the controller of

N2N2 Company
Balance Sheet
December 31, 2016
Current assets $ 40,000
Investments in equity securities (10,000 shares)     60,000
Equipment, net 250,000
Intangibles     60,000
     Total Assets 410,000
Liabilities and Equity
Current liabilities     75,000
Non-current liabilities     25,000
Common stock ($5 par)     20,000
Paid in capital in excess of par 110,000
Retained earnings 180,000
     Total Liabilities and Equity 410,000

Using the attached T-account template, prepare the entries to recognize the following transactions.

Declares and pays a $ 0.50 per share cash dividend

Declares and issues a 10% stock dividend when the market price of the stock is $14 per share

Declares and issues a 30% stock dividend when the market price of the stock is $15 per share

Declares and issues a property dividend as follows. N2N2 gives one share of its investment in equity securities for every 2 shares that a N2N2 investor holds of N2N2 common stock. The equity investment shares are selling for $10 per share, in an active market, on the date the property dividend is declared by the board of directors.

Declares a 2 for 1 stock split and issues new shares to the stockholders

Expert Answer


Entries to recognize the following transactions are as shown below:

Date Particulars L.F Amount ($) Amount ($)
1 Dividend Expense 2,000
Dividend payable 2,000
(For dividend declared)
(20,000/5 = 4,000 shares = 4,000*.5 = 2,000)
Dividend payable 2,000
Cash 2,000
(for dividend paid)
2 Retained Earnings (4,000*10%*14) 5,600
Common Stock Dividend distributable (4,000*10%*5) 2,000
Additional paid in capital (400*14 )- 2,000 3,600
(for 10% stock declared)
Common Stock Dividend Distributable 2,000
Common Stock 2,000
(For stock issued)
3 Retained Earnings (4,000*30%*5) 6,000
Common Stock Dividend distributable (4,000*30%*5) 6,000
(for 30% stock declared)
Common Stock Dividend Distributable 6,000
Common Stock 6,000
(For stock issued)
4 Equity Investments (10-6)*2,000 8,000
Unrealized holding gain or loss- Income 8,000
(For increase in value of securities to be issued recorded)
Retained Earnings (2,000*10) 20,000
Equity Investments 20,000
(For distribution of property dividend recorded)
5 No journal entry required. Only in Note mentioned that stock is split by 2 for 1
Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.


Let us write that nagging essay.


Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.


Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.


Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.


Receive your Paper

After Editing, your paper will be sent to you via email.