E15.15B

(L0 3)

(Dividend Entries)

The following data were taken from the balance sheet accounts of Symbol Two

Corporation on June 30, 2019:

Current assets

$125,000

Investments 365,000

Common stock (par value $1)

70,000

Paid-in capital in excess of par

680,000

Retained earnings

963,000

Instructions

Prepare the required journal entries for the following unrelated items:

(a)

The par value of the capital stock is reduced to $0.50 with a 2-for-1 stock split.

(b)

A 10% stock dividend is declared and distributed at a time when the market value of the shares is $25 per

share.

(c)

A property dividend is declared September 12, 2020, and paid October 1, 2020, in common shares in another

company held as an equity investment. The equity investment has a book value of $50,000 and a fair market

value of $205,000.