3.Kendall Corporation has 600,000 shares authorized and 150,000 shares issued and outstanding of its $4 par value common stock. The stock is currently selling for $50 per share. There is $900,000 of additional paid-in capital and the firm has $3,000,000 of retained earnings.Prepare the appropriate journal entry for Kendall Corporation for each of the alternative events below.a) 2% stock dividendb) 100% stock dividendc) 2 for 1 stock split (Assume 300,000 new shares were exchanged for the old shares)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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3.Kendall Corporation has 600,000 shares
authorized and 150,000 shares issued and
outstanding of its $4 par value common stock.
The stock is currently selling for $50 per share.
There is $900,000 of additional paid-in capital
and the firm has $3,000,000 of retained
earnings.Prepare the appropriate journal entry
for Kendall Corporation for each of the
alternative events below.a) 2% stock dividendb)
100% stock dividendc) 2 for 1 stock split
(Assume 300,000 new shares were exchanged
for the old shares)
Transcribed Image Text:3.Kendall Corporation has 600,000 shares authorized and 150,000 shares issued and outstanding of its $4 par value common stock. The stock is currently selling for $50 per share. There is $900,000 of additional paid-in capital and the firm has $3,000,000 of retained earnings.Prepare the appropriate journal entry for Kendall Corporation for each of the alternative events below.a) 2% stock dividendb) 100% stock dividendc) 2 for 1 stock split (Assume 300,000 new shares were exchanged for the old shares)
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