The common stock of Swifty Inc. is currently selling at $126 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $76 per share. 8 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (List all debit entries before credit entries. Enter amounts in dollars. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts) a. b. The board votes a 2-for-1 stock split. The board votes a 100% stock dividend. No. Account Titles and Explanation a No Entry No Entry Common Stock Debit Credit 1000
The common stock of Swifty Inc. is currently selling at $126 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $76 per share. 8 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (List all debit entries before credit entries. Enter amounts in dollars. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts) a. b. The board votes a 2-for-1 stock split. The board votes a 100% stock dividend. No. Account Titles and Explanation a No Entry No Entry Common Stock Debit Credit 1000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:No. Account Titles and Explanation
a.
b.
No Entry
No Entry
Common Stock
(To record the declaration)
(To record the distribution)
Debit
Credit
GOOD DO
300 00
Transcribed Image Text:The common stock of Swifty Inc. is currently selling at $126 per share. The directors wish to reduce the share price and increase share
volume prior to a new issue. The per share par value is $10; book value is $76 per share. 8 million shares are issued and outstanding.
Prepare the necessary journal entries assuming the following. (List all debit entries before credit entries. Enter amounts in dollars. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the
account titles and enter O for the amounts.)
a.
b.
The board votes a 2-for-1 stock split.
The board votes a 100% stock dividend.
No. Account Titles and Explanation
a.
No Entry
No Entry
Common Stock
Debit
0
Credit
100
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