The common stock of Vaughn Inc. is currently selling at $119 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 $63 per share. 10 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. No. Account Titles and Explanation a. The board votes a 2-for-1 stock split. The board votes a 100% stock dividend. b. (To record the declaration) (To record the distribution) Debit Credit
The common stock of Vaughn Inc. is currently selling at $119 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 $63 per share. 10 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. No. Account Titles and Explanation a. The board votes a 2-for-1 stock split. The board votes a 100% stock dividend. b. (To record the declaration) (To record the distribution) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The common stock of Vaughn Inc. is currently selling at $119 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 $63 per share. 10 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.
No. Account Titles and Explanation
a.
The board votes a 2-for-1 stock split.
The board votes a 100% stock dividend.
b.
(To record the declaration)
(To record the distribution)
Debit
Credit
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