(Entries for Stock Dividends and Stock Splits) The stockholders’ equity accounts of G.K.
Chesterton Company have the following balances on December 31, 2007.

Shares of G.K. Chesterton Company stock are currently selling on the Midwest Stock Exchange at $37.
instructions . Prepare the appropriate journal entries for each of the following cases.

(a) Astock dividend of 5% is declared and issued.

(b) Astock dividend of 100% is declared and issued.
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(c) A 2-for-1 stock split is declared and issued.

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Common stock, $10 par, 300,000 shares issued and outstanding Paid-in capital in excess of par Retained earnings $3,000,000 1,200,000 5,600,000