The following data were taken from the SFP accounts of Bedard Corporation on December 31, 2020: Current assets......................................................$1,040,000 FV-NI investments.....................................................824,000 Common shares.....................................................6,000,000 (unlimited authorized, 600,000

Question

37 users unlocked this solution today!

The following data were taken from the SFP accounts of Bedard Corporation on December 31, 2020: 

Current assets......................................................$1,040,000 

FV-NI investments.....................................................824,000 

Common shares.....................................................6,000,000 

(unlimited authorized, 600,000 shares issued and outstanding) 

Contributed surplus..................................................350,000 

Retained earnings...................................................1,840,000

Instructions 

Prepare the required journal entries for the following unrelated events in January 2021. 

a. A 6% stock dividend is declared at their fair value and distributed at a time when the shares' fair value is $48 per share. 

b. A 4-for-1 stock split is effected. 

c. A dividend in kind is declared on January 8, 2021, and paid on January 28, 2021, in FV-NI investments. The investments have a carrying amount of $160,000 (fair value at December 31, 2020) and a January 8 fair value of $165,000.