HiTech Manufacturing Company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transactions occurred during the current year.

Apr.	30		Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of stock was $25 per share.
June	1		Declared a cash dividend of $0.63 per share.
July	1		Paid the $0.63 cash dividend to stockholders.
Aug.	1		Declared a 5 percent stock dividend. Market price of stock was $19 per share.
Sept.	10		Issued shares resulting from the 5 percent stock dividend declared on August 1.

a. Prepare journal entries to record the above transactions.

b. Compute the number of shares of capital stock outstanding at year-end.

c. What is the par value per share of HiTech Manufacturing stock at the end of the year?

d. Determine the effect of each of the following on total stockholders' equity: stock split, declaration and payment of a cash dividend, declaration and distribution of a stock dividend.

• 1

  Record the stock split.

• 2

  Record the declaration of a dividend on stock outstanding. ('Dividends' account is to be used for this entry.)

• 3

  Record payment of the dividend declared on June 1.

• 4

  Record declaration of stock dividend.

• 5

  Record distribution of stock dividend.