The stockholders’ equity accounts of Riverbed Company have the following balances on December 31, 2020. Common stock, $10 par, 281,000 shares issued and outstanding $2,810,000 Paid-in capital in excess of par—common stock 1,220,000 Retained earnings 5,600,000 Shares of Riverbed Company stock are currently selling on the Midwest Stock Exchange at $34. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) A stock dividend of 6% is (1) declared and (2) issued. (b) A stock dividend of 100% is (1) declared and (2) issued. (c) A 2-for-1 stock split is (1) declared and (2) issued.
The stockholders’ equity accounts of Riverbed Company have the following balances on December 31, 2020. Common stock, $10 par, 281,000 shares issued and outstanding $2,810,000 Paid-in capital in excess of par—common stock 1,220,000 Retained earnings 5,600,000 Shares of Riverbed Company stock are currently selling on the Midwest Stock Exchange at $34. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) A stock dividend of 6% is (1) declared and (2) issued. (b) A stock dividend of 100% is (1) declared and (2) issued. (c) A 2-for-1 stock split is (1) declared and (2) issued.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...
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Question
The
Common stock, $10 par, 281,000 shares issued and outstanding | $2,810,000 | |
Paid-in capital in excess of par—common stock | 1,220,000 | |
5,600,000 |
Shares of Riverbed Company stock are currently selling on the Midwest Stock Exchange at $34.
Prepare the appropriate
(a) | A stock dividend of 6% is (1) declared and (2) issued. | |
---|---|---|
(b) | A stock dividend of 100% is (1) declared and (2) issued. | |
(c) | A 2-for-1 stock split is (1) declared and (2) issued. |
No.
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
(a) (1)
|
enter an account title for case A to record the declaration of stock dividends
|
enter a debit amount
|
enter a credit amount
|
enter an account title for case A to record the declaration of stock dividends
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for case A to record the declaration of stock dividends
|
enter a debit amount
|
enter a credit amount
|
|
(a) (2)
|
enter an account title for case A to record the issuance of stock dividends
|
enter a debit amount
|
enter a credit amount
|
enter an account title for case A to record the issuance of stock dividends
|
enter a debit amount
|
enter a credit amount
|
|
(b) (1)
|
enter an account title for case B to record the declaration of stock dividends
|
enter a debit amount
|
enter a credit amount
|
enter an account title for case B to record the declaration of stock dividends
|
enter a debit amount
|
enter a credit amount
|
|
(b) (2)
|
enter an account title for case B to record the issuance of stock dividends
|
enter a debit amount
|
enter a credit amount
|
enter an account title for case B to record the issuance of stock dividends
|
enter a debit amount
|
enter a credit amount
|
|
(c) (1)
|
enter an account title for case C to record the declaration of the stock split
|
enter a debit amount
|
enter a credit amount
|
enter an account title for case C to record the declaration of the stock split
|
enter a debit amount
|
enter a credit amount
|
|
(c) (2)
|
enter an account title for case C to record the issuance of the stock split
|
enter a debit amount
|
enter a credit amount
|
enter an account title for case C to record the issuance of the stock split
|
enter a debit amount
|
enter a credit amount
|
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