Galaxy manufactures golf equipment and apparel. On July 31, Golf Galaxy's board of directors declares a stock dividend on Its 00, s11 par, common shares. The market price of the common stock is $40 on July 31. ulred: & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock (If no entry Is required for a particular transactlon/event, select "No Journal Entry Requlred" In the first account fleld.) hew transaction list Journal entry worksheet 1 2 3 Record the stock dividend assuming a small (10%) stock dividend.

Galaxy manufactures golf equipment and apparel. On July 31, Golf Galaxy's board of directors declares a stock dividend on Its 00, s11 par, common shares. The market price of the common stock is $40 on July 31. ulred: & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock (If no entry Is required for a particular transactlon/event, select "No Journal Entry Requlred" In the first account fleld.) hew transaction list Journal entry worksheet 1 2 3 Record the stock dividend assuming a small (10%) stock dividend.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Journal Entry Worksheet:
1, Record the stock dividend assuming a small (10%) stock dividend.
2, Record the stock dividend assuming a large (100%) stock dividend.
3, Record the stock dividend assuming a 2-for-1 stock split.

Golf Galaxy manufactures golf equipment and apparel. On July 31, Golf Galaxy's board of directors declares a stock dividend on its 20,000, $11 par, common shares. The market price of the common stock is $40 on July 31.

**Required:**
1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

**Journal Entry Worksheet:**

A section is provided to record the stock dividend assuming a small (10%) stock dividend. The worksheet includes rows for:

- **Date:** Entry for July 31 is specified.
- **General Journal:** Area to input account details.
- **Debit and Credit Columns:** Sections to enter respective amounts.

A note at the bottom instructs to enter debits before credits.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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