(Dividend Entries) The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2016. Current assets $540,000 Debt investments (trading) 624,000 Common stock (par value $10) 500,000 Paid-in capital in excess of par 150,000 Retained earnings 840,000 InstructionsPrepare the required journal entries for the following unrelated items.(a) A 5% stock dividend is declared and distributed at a time when the market price per share is $39.(b) The par value of the common stock is reduced to $2 with a 5-for-1 stock split.(c) A dividend is declared January 5, 2017, and paid January 25, 2017, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.
(Dividend Entries) The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2016. Current assets $540,000 Debt investments (trading) 624,000 Common stock (par value $10) 500,000 Paid-in capital in excess of par 150,000 Retained earnings 840,000 InstructionsPrepare the required journal entries for the following unrelated items.(a) A 5% stock dividend is declared and distributed at a time when the market price per share is $39.(b) The par value of the common stock is reduced to $2 with a 5-for-1 stock split.(c) A dividend is declared January 5, 2017, and paid January 25, 2017, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
(Dividend Entries) The following data were taken from the
| Current assets | $540,000 |
| Debt investments (trading) | 624,000 |
| Common stock (par value $10) | 500,000 |
| Paid-in capital in excess of par | 150,000 |
| 840,000 |
Instructions
Prepare the required
(a) A 5% stock dividend is declared and distributed at a time when the market price per share is $39.
(b) The par value of the common stock is reduced to $2 with a 5-for-1 stock split.
(c) A dividend is declared January 5, 2017, and paid January 25, 2017, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.
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