(Dividend Entries) The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2006.

Current assets $540,000 Investments 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 value of the shares is

$39 per share.

(b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock split.

(c) A dividend is declared January 5, 2007, and paid January 25, 2007, in bonds held as an investment.
The bonds have a book value of $100,000 and a fair market value of $135,000.