The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019. 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 Instructions Prepare 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, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.
The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019. 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 Instructions Prepare 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, 2020, and paid January 25, 2020, 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
The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019.
| 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, 2020, and paid January 25, 2020, 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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