Accounting for stock dividends and stock splits (Learning Objective 5)

10–15 min.

Maxim Corporation has 40,000 shares of $20 par value common stock outstanding.

Prepare entries in journal form without explanations for the following transactions.

(Market value of the stock was $30.00 on December 16 and $31.00 on December 30.)

Dec 16 30 Declared and distributed a 15 percent stock dividend.

Declared a 2-for-1 stock split.

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