E15-15 (LO3) Dividend Entries

The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019.

Current assets

$ 540,000

Debt investments (trading)

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 stock dividend is declared and distributed

Amount of dividend

5%

Per share market price

$ 39.00

(b)	The par value of the common stock is reduced with a 5-for-1 stock split
			New par value per share		$ 2.00
(c)	A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment.
			Book value of bonds		$ 100,000
			Fair value of bonds		$ 135,000