Inferring Stock Issuances and Cash Dividends from Changes in Stockholders’ Equity – The Kroger Co. is one of the largest retailers in the United States and also manufactures and processes some of the food for sale in its supermarkets. Kroger reported the following January 31 balances in its stockholders’ equity accounts (dollars in millions):
|
Current Year |
Prior Year |
|
|
Common stock |
$955 |
$947 |
|
Paid-in capital |
3,266 |
3,031 |
|
Retained earnings |
7,489 |
6,480 |
During the current year, Kroger reported net income of $1,249.
Required:
1. How much did Kroger declare in dividends for the year?
2. Assume that the only other transaction that affected stockholders’ equity during the current year was a single stock issuance. Recreate the journal entry reflecting the stock issuance.