Issuing Par Value Stock To illustrate the issue of common stock with a par value, assume that Nelson Incorporated is authorized to issue 250 shares of common stock. During 2018, Nelson issued 100 shares of $10 par common stock for $22 per share. The event increases assets and stockholders' equity by $2,200 ($22 x 100 shares). The increase Page 302 in stockholders equity is divided into two parts, $1,000 of par value ($10 per share x 100 shares) and $1,200 ($2,200 $1,000) received in excess of par value. The income statement is not affected. The $2,200 cash inflow is reported in the financing activities section of the statement of cash flows. The effects on the financial statements follow: Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Com. Stk. + PIC in Excess 2,200 NA + 1,000 + 1,200 NA NA NA 2,200 FA The legal capital of the corporation is $1,000, the total par value of the issued common stock. The number of shares issued can be easily verified by dividing the total amount in the common stock account by the par value ($1,000 = $10 = 100 shares). Stock Classification Assume Nelson Incorporated obtains authorization to issue 400 shares of class B, $20 par value common stock. The company issues 150 shares of this stock at $25 per share. The event increases assets and stockholders' equity by $3,750 ($25 x 150 shares). The increase in stockholders' equity is divided into two parts, $3,000 of par value ($20 per share x 150 shares) and $750 ($3,750 $3,000) received in excess of par value. The income statement is not affected. The $3,750 cash inflow is reported in the financing activities section of the statement of cash flows. The effects on the financial statements follow: Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Com. Stk. + PIC in Excess 3,750 = NA + 3,000 + 750 NA NA NA 3,750 FA As the preceding event suggests, companies can issue numerous classes of common stock. The specific rights and privileges for each class are described in the individual stock certificates. Stock Issued at Stated Value Assume Nelson is authorized to issue 300 shares of a third class of stock, 7 percent cumulative preferred stock with a stated value of $10 per share. Nelson issued 100 shares of the preferred stock at a price of $22 per share. The effects on the financial statements are identical to those described for the issue of the $10 par value common stock. Assets = Liab. + Equity Rev. Exp. = Net Inc. Cash Flow Cash = Pfd. Stk. + PIC in Excess 2,200 NA + 1,000 + 1,200 NA NA NA 2,200 FA Stock Issued with No Par Value Assume that Nelson Incorporated is authorized to issue 150 shares of a fourth class of stock. This stock is no-par common stock. Nelson issues 100 shares of this no-par stock at $22 per share. The entire amount received ($22 x 100 = $2,200) is recorded in the stock account. The effects on the financial statements follow: Page 303 Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Com. Stk. + PIC in Excess 2,200 = NA + 2,200 + NA NA NA = NA 2,200 FA Financial Statement Presentation Exhibit 8.4 Q displays Nelson Incorporateds balance sheet after the four stock issuances described previously. The exhibit assumes that Nelson earned and retained $5,000 of cash income during 2018. The stock accounts are presented first, followed by the paid-in capital in excess of par (or stated) value accounts. A wide variety of reporting formats is used in practice. For example, another popular format is to group accounts by stock class, with the paid-in capital in excess accounts listed with their associated stock accounts. Alternatively, many companies combine the different classes of stock into a single amount and provide the detailed information in notes to the financial statements. EXHIBIT 8.4 NELSON INCORPORATED Balance Sheet As of December 31, 2018 Assets $15,350 $ 1,000 1,000 3,000 Cash Stockholders' equity Preferred stock, $10 stated value, 7% cumulative, 300 shares authorized, 100 issued and outstanding Common stock, $10 par value, 250 shares authorized, 100 issued and outstanding Common stock, class B, $20 par value, 400 shares authorized, 150 issued and outstanding Common stock, no par, 150 shares authorized, 100 issued and outstanding Paid-in capital in excess of stated valuepreferred Paid-in capital in excess of par valuecommon Paid-in capital in excess of par value-class B common Total paid-in capital Retained earnings Total stockholders' equity 2,200 1,200 1,200 750 10,350 5,000 $15,350 Treasury Stock LO 8-5 Show how treasury stock affects financial statements. Video When a company buys its own stock, the stock purchased is called treasury stock. Why would a company buy its own stock? Common reasons include (1) to have stock available to give employees pursuant to stock option plans, (2) to accumulate stock in preparation for a merger or business combination, (3) to reduce the number of shares outstanding in order to increase earnings per share, (4) to keep the price of the stock high when it appears to be falling, and (5) to avoid a hostile takeover (removing shares from the open market reduces the opportunity for outsiders to obtain enough voting shares to gain control of the company). Page 304 Conceptually, purchasing treasury stock is the reverse of issuing stock. When a business issues stock, the assets and equity of the business increase. When a business buys treasury stock, the assets and equity of the business decrease. To illustrate, return to the Nelson Incorporated example. Assume that in 2018 Nelson paid $20 per share to buy back 50 shares of the $10 par value common stock that it originally issued at $22 per share. The purchase of treasury stock is an asset use transaction. Assets and stockholders' equity decrease by the cost of the purchase ($20 x 50 shares = $1,000). The income statement is not affected. The cash outflow is reported in the financing activities section of the statement of cash flows. The effects on the financial statements follow: Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Other Equity Accts. -- Treasury Stk. (1,000) NA + NA 1,000 NA NA NA (1,000) FA The Treasury Stock account is a contra equity account. It is deducted from the other equity accounts in determining total stockholders' equity. In this example, the Treasury Stock account contains the full amount paid ($1,000). The original issue price and the par value of the stock have no effect on the Treasury Stock account. Recognizing the full amount paid in the treasury stock account is called the cost method of accounting for treasury stock transactions. Although other methods could be used, the cost method is the most common. Assume Nelson reissues 30 shares of treasury stock at a price of $25 per share. As with any other stock issue, the sale of treasury stock is an asset source transaction. In this case, assets and stockholders' equity increase by $750 ($25 X 30 shares). The income statement is not affected. The cash inflow is reported in the financing activities section of the statement of cash flows. The effects on the financial statements follow: Assets = Liab. + Equity Rev. Exp. . = Net Inc. Cash Flow Cash = Other Equity Accounts Treasury Stock + PIC from Treasury Stk. 750 = NA + NA (600) + 150 NA NA = NA 750 FA The decrease in the Treasury Stock account increases stockholders' equity. The $150 difference between the cost of the treasury stock ($20 per share x 30 shares = $600) and the sales price ($750) is not reported as a gain. The sale of treasury stock is a capital acquisition, not a revenue transaction. The $150 is additional paid-in capital. Corporations do not recognize gains or losses on the sale of treasury stock. After selling 30 shares of treasury stock, 20 shares remain in Nelson's possession. These shares cost $20 each, so the balance in the Treasury Stock account is now $400 ($20 x 20 shares). Treasury stock is reported on the balance sheet directly below retained earnings. Although this placement suggests that treasury stock reduces retained earnings, the reduction actually applies to the entire stockholders' equity section. Exhibit 8.5 @ shows the presentation of treasury stock in the balance sheet. Declaration Date Although corporations are not required to declare dividends, they are legally obligated to pay dividends once they have been declared. They must recognize a liability on the declaration date (in this case, October 15, 2018). The increase in liabilities is accompanied by a decrease in retained earnings. The income statement and statement of cash flows are not affected. The effects on the financial statements of declaring the $70 (0.07 x $10 x 100 shares) dividend follow: Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Div. Pay. Com. Stk. + Ret. Earn. NA 70 + NA + (70) NA - NA = NA NA Date of Record Cash dividends are paid to investors who owned the preferred stock on the date of record in this case November 15, 2018). Any stock sold after the date of record but before the payment date (in this case December 15, 2018) is traded ex-dividend , meaning the buyer will not receive the upcoming dividend. The date of record is merely a cutoff date. It does not affect the financial statements. Payment Date Nelson actually paid the cash dividend on the payment date. This event has the same effect as paying any other liability. Assets (cash) and liabilities (dividends payable) both decrease. The income statement is not affected. The cash outflow is reported in the financing activities section of the statement of cash flows. The effects of the cash payment on the financial statements follow: Assets = Liab. + Equity Rev. Exp. = Net Inc. Cash Flow Cash Div. Pay. + Com. Stk. + Ret. Earn. (70) (70) + NA + NA NA NA = NA (70) FA Stock Dividends Dividends are not always paid in cash. Companies sometimes choose to issue stock dividends, wherein they distribute additional shares of stock to the stockholders. To illustrate, assume that Nelson Incorporated decided to issue a 10 percent stock dividend on its class B, $20 par value common stock. Because dividends apply to outstanding shares only, Nelson will issue 15 (150 outstanding shares x 0.10) additional shares of class B stock. Assume the new shares are distributed when the market value of the stock is $30 per share. As a result of the stock dividend, Nelson will transfer $450 ($30 x 15 new shares) from retained earnings to paid-in capital. The stock dividend is an equity exchange transaction. The income statement and statement of cash flows are not affected. The effects of the stock dividend on the financial statements follow: Assets Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow Com. Stk. + PIC in Excess + Ret. Earn. NA NA + 300 + 150 + (450) NA NA NA NA Stock dividends have no effect on assets. They merely increase the number of shares of stock outstanding. Because a greater number of shares represents the same ownership interest in the same amount of assets, the market value per share of a company's stock normally declines when a stock dividend is distributed. A lower market price makes the stock more affordable and may increase demand for the stock, which benefits both the company and its stockholders. Prepare the stockholders' equity section of the year-end balance sheet. LO 8-3, 8-4, 8-5, 8-6 Problem 8-23 Recording and reporting stock transactions and cash dividends across two accounting cycles Sun Corporation received a charter that authorized the issuance of 100,000 shares of $10 par common stock and 50,000 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: CHECK FIGURES b. Preferred Stock, 2018: $50,000 c. Common Shares Outstanding, 2019: 35,100 2018 Jan. 5 12 Apr. 5 Dec. 31 Sold 6,000 shares of the $10 par common stock for $15 per share. Sold 1,000 shares of the 5 percent preferred stock for $55 per share. Sold 30,000 shares of the $10 par common stock for $21 per share. During the year, earned $150,000 in cash revenue and paid $88,000 for cash operating expenses. Declared the cash dividend on the outstanding shares of preferred stock for 2018. The dividend will be paid on February 15 to stockholders of record on January 10, 2019. 31 2019 Feb. 15 Mar. 3 May 5 Dec. 31 Paid the cash dividend declared on December 31, 2018. Sold 15,000 shares of the $50 par preferred stock for $53 per share. Purchased 900 shares of the common stock as treasury stock at $24 per share. During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses. Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. 31 Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet at December 31, 2018. c. Prepare the balance sheet at December 31, 2019. Chapter 8 - Practice Name (Type Here : In this chapter, we start to understand the different types of structures that are available for companies, and the advantages and disadvantages of each. We also delve into the recording of stock transactions. Beginning on Page 301, review the 2018 and 2019 transactions and the journal entries that are required as a result of the sale and repurchase of stock. Then on the following lines, record the journal entry (debit and credit) for each of the transactions and adjustments that are shown in the chapter in the equation format. Issuing Common Stock for more than Par Value (pg 301-302) Issuing "classified" Stock for more than Par Value (pg 302) Issuing Preferred Stock for more than Stated Value (pg 302) Issuing Stock with no Par Value (pg 302 - 303) Re-purchasing Stock (Purchasing Treasury Stock) (pg. 304) Issuing Stock previously re-purchased (Re-issuing Treasury Stock) (pg 304) 1 Recording Dividends at the Date of Declaration (pg 305) Recording Dividends at the Date of Payment (assuming declared in a prior period) (pg 306) Recording Stock Dividends (pg. 306) Chapter 8 - Apply For each of the following exercises and problems that are assigned as homework, record the journal entry that matches the equation solution you prepared on Connect. P8-23 1/5/18 1/12/18 4/5/18 12/31/18 2 12/31/18 12/15/19 3/3/19 5/5/19 12/31/19 12/31/19 3 Issuing Par Value Stock To illustrate the issue of common stock with a par value, assume that Nelson Incorporated is authorized to issue 250 shares of common stock. During 2018, Nelson issued 100 shares of $10 par common stock for $22 per share. The event increases assets and stockholders' equity by $2,200 ($22 x 100 shares). The increase Page 302 in stockholders equity is divided into two parts, $1,000 of par value ($10 per share x 100 shares) and $1,200 ($2,200 $1,000) received in excess of par value. The income statement is not affected. The $2,200 cash inflow is reported in the financing activities section of the statement of cash flows. The effects on the financial statements follow: Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Com. Stk. + PIC in Excess 2,200 NA + 1,000 + 1,200 NA NA NA 2,200 FA The legal capital of the corporation is $1,000, the total par value of the issued common stock. The number of shares issued can be easily verified by dividing the total amount in the common stock account by the par value ($1,000 = $10 = 100 shares). Stock Classification Assume Nelson Incorporated obtains authorization to issue 400 shares of class B, $20 par value common stock. The company issues 150 shares of this stock at $25 per share. The event increases assets and stockholders' equity by $3,750 ($25 x 150 shares). The increase in stockholders' equity is divided into two parts, $3,000 of par value ($20 per share x 150 shares) and $750 ($3,750 $3,000) received in excess of par value. The income statement is not affected. The $3,750 cash inflow is reported in the financing activities section of the statement of cash flows. The effects on the financial statements follow: Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Com. Stk. + PIC in Excess 3,750 = NA + 3,000 + 750 NA NA NA 3,750 FA As the preceding event suggests, companies can issue numerous classes of common stock. The specific rights and privileges for each class are described in the individual stock certificates. Stock Issued at Stated Value Assume Nelson is authorized to issue 300 shares of a third class of stock, 7 percent cumulative preferred stock with a stated value of $10 per share. Nelson issued 100 shares of the preferred stock at a price of $22 per share. The effects on the financial statements are identical to those described for the issue of the $10 par value common stock. Assets = Liab. + Equity Rev. Exp. = Net Inc. Cash Flow Cash = Pfd. Stk. + PIC in Excess 2,200 NA + 1,000 + 1,200 NA NA NA 2,200 FA Stock Issued with No Par Value Assume that Nelson Incorporated is authorized to issue 150 shares of a fourth class of stock. This stock is no-par common stock. Nelson issues 100 shares of this no-par stock at $22 per share. The entire amount received ($22 x 100 = $2,200) is recorded in the stock account. The effects on the financial statements follow: Page 303 Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Com. Stk. + PIC in Excess 2,200 = NA + 2,200 + NA NA NA = NA 2,200 FA Financial Statement Presentation Exhibit 8.4 Q displays Nelson Incorporateds balance sheet after the four stock issuances described previously. The exhibit assumes that Nelson earned and retained $5,000 of cash income during 2018. The stock accounts are presented first, followed by the paid-in capital in excess of par (or stated) value accounts. A wide variety of reporting formats is used in practice. For example, another popular format is to group accounts by stock class, with the paid-in capital in excess accounts listed with their associated stock accounts. Alternatively, many companies combine the different classes of stock into a single amount and provide the detailed information in notes to the financial statements. EXHIBIT 8.4 NELSON INCORPORATED Balance Sheet As of December 31, 2018 Assets $15,350 $ 1,000 1,000 3,000 Cash Stockholders' equity Preferred stock, $10 stated value, 7% cumulative, 300 shares authorized, 100 issued and outstanding Common stock, $10 par value, 250 shares authorized, 100 issued and outstanding Common stock, class B, $20 par value, 400 shares authorized, 150 issued and outstanding Common stock, no par, 150 shares authorized, 100 issued and outstanding Paid-in capital in excess of stated valuepreferred Paid-in capital in excess of par valuecommon Paid-in capital in excess of par value-class B common Total paid-in capital Retained earnings Total stockholders' equity 2,200 1,200 1,200 750 10,350 5,000 $15,350 Treasury Stock LO 8-5 Show how treasury stock affects financial statements. Video When a company buys its own stock, the stock purchased is called treasury stock. Why would a company buy its own stock? Common reasons include (1) to have stock available to give employees pursuant to stock option plans, (2) to accumulate stock in preparation for a merger or business combination, (3) to reduce the number of shares outstanding in order to increase earnings per share, (4) to keep the price of the stock high when it appears to be falling, and (5) to avoid a hostile takeover (removing shares from the open market reduces the opportunity for outsiders to obtain enough voting shares to gain control of the company). Page 304 Conceptually, purchasing treasury stock is the reverse of issuing stock. When a business issues stock, the assets and equity of the business increase. When a business buys treasury stock, the assets and equity of the business decrease. To illustrate, return to the Nelson Incorporated example. Assume that in 2018 Nelson paid $20 per share to buy back 50 shares of the $10 par value common stock that it originally issued at $22 per share. The purchase of treasury stock is an asset use transaction. Assets and stockholders' equity decrease by the cost of the purchase ($20 x 50 shares = $1,000). The income statement is not affected. The cash outflow is reported in the financing activities section of the statement of cash flows. The effects on the financial statements follow: Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Other Equity Accts. -- Treasury Stk. (1,000) NA + NA 1,000 NA NA NA (1,000) FA The Treasury Stock account is a contra equity account. It is deducted from the other equity accounts in determining total stockholders' equity. In this example, the Treasury Stock account contains the full amount paid ($1,000). The original issue price and the par value of the stock have no effect on the Treasury Stock account. Recognizing the full amount paid in the treasury stock account is called the cost method of accounting for treasury stock transactions. Although other methods could be used, the cost method is the most common. Assume Nelson reissues 30 shares of treasury stock at a price of $25 per share. As with any other stock issue, the sale of treasury stock is an asset source transaction. In this case, assets and stockholders' equity increase by $750 ($25 X 30 shares). The income statement is not affected. The cash inflow is reported in the financing activities section of the statement of cash flows. The effects on the financial statements follow: Assets = Liab. + Equity Rev. Exp. . = Net Inc. Cash Flow Cash = Other Equity Accounts Treasury Stock + PIC from Treasury Stk. 750 = NA + NA (600) + 150 NA NA = NA 750 FA The decrease in the Treasury Stock account increases stockholders' equity. The $150 difference between the cost of the treasury stock ($20 per share x 30 shares = $600) and the sales price ($750) is not reported as a gain. The sale of treasury stock is a capital acquisition, not a revenue transaction. The $150 is additional paid-in capital. Corporations do not recognize gains or losses on the sale of treasury stock. After selling 30 shares of treasury stock, 20 shares remain in Nelson's possession. These shares cost $20 each, so the balance in the Treasury Stock account is now $400 ($20 x 20 shares). Treasury stock is reported on the balance sheet directly below retained earnings. Although this placement suggests that treasury stock reduces retained earnings, the reduction actually applies to the entire stockholders' equity section. Exhibit 8.5 @ shows the presentation of treasury stock in the balance sheet. Declaration Date Although corporations are not required to declare dividends, they are legally obligated to pay dividends once they have been declared. They must recognize a liability on the declaration date (in this case, October 15, 2018). The increase in liabilities is accompanied by a decrease in retained earnings. The income statement and statement of cash flows are not affected. The effects on the financial statements of declaring the $70 (0.07 x $10 x 100 shares) dividend follow: Assets = Liab. + Equity Rev. Exp. Net Inc. Cash Flow Cash = Div. Pay. Com. Stk. + Ret. Earn. NA 70 + NA + (70) NA - NA = NA NA Date of Record Cash dividends are paid to investors who owned the preferred stock on the date of record in this case November 15, 2018). Any stock sold after the date of record but before the payment date (in this case December 15, 2018) is traded ex-dividend , meaning the buyer will not receive the upcoming dividend. The date of record is merely a cutoff date. It does not affect the financial statements. Payment Date Nelson actually paid the cash dividend on the payment date. This event has the same effect as paying any other liability. Assets (cash) and liabilities (dividends payable) both decrease. The income statement is not affected. The cash outflow is reported in the financing activities section of the statement of cash flows. The effects of the cash payment on the financial statements follow: Assets = Liab. + Equity Rev. Exp. = Net Inc. Cash Flow Cash Div. Pay. + Com. Stk. + Ret. Earn. (70) (70) + NA + NA NA NA = NA (70) FA Stock Dividends Dividends are not always paid in cash. Companies sometimes choose to issue stock dividends, wherein they distribute additional shares of stock to the stockholders. To illustrate, assume that Nelson Incorporated decided to issue a 10 percent stock dividend on its class B, $20 par value common stock. Because dividends apply to outstanding shares only, Nelson will issue 15 (150 outstanding shares x 0.10) additional shares of class B stock. Assume the new shares are distributed when the market value of the stock is $30 per share. As a result of the stock dividend, Nelson will transfer $450 ($30 x 15 new shares) from retained earnings to paid-in capital. The stock dividend is an equity exchange transaction. The income statement and statement of cash flows are not affected. The effects of the stock dividend on the financial statements follow: Assets Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow Com. Stk. + PIC in Excess + Ret. Earn. NA NA + 300 + 150 + (450) NA NA NA NA Stock dividends have no effect on assets. They merely increase the number of shares of stock outstanding. Because a greater number of shares represents the same ownership interest in the same amount of assets, the market value per share of a company's stock normally declines when a stock dividend is distributed. A lower market price makes the stock more affordable and may increase demand for the stock, which benefits both the company and its stockholders. Prepare the stockholders' equity section of the year-end balance sheet. LO 8-3, 8-4, 8-5, 8-6 Problem 8-23 Recording and reporting stock transactions and cash dividends across two accounting cycles Sun Corporation received a charter that authorized the issuance of 100,000 shares of $10 par common stock and 50,000 shares of $50 par, 5 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: CHECK FIGURES b. Preferred Stock, 2018: $50,000 c. Common Shares Outstanding, 2019: 35,100 2018 Jan. 5 12 Apr. 5 Dec. 31 Sold 6,000 shares of the $10 par common stock for $15 per share. Sold 1,000 shares of the 5 percent preferred stock for $55 per share. Sold 30,000 shares of the $10 par common stock for $21 per share. During the year, earned $150,000 in cash revenue and paid $88,000 for cash operating expenses. Declared the cash dividend on the outstanding shares of preferred stock for 2018. The dividend will be paid on February 15 to stockholders of record on January 10, 2019. 31 2019 Feb. 15 Mar. 3 May 5 Dec. 31 Paid the cash dividend declared on December 31, 2018. Sold 15,000 shares of the $50 par preferred stock for $53 per share. Purchased 900 shares of the common stock as treasury stock at $24 per share. During the year, earned $210,000 in cash revenues and paid $98,000 for cash operating expenses. Declared the annual dividend on the preferred stock and a $0.50 per share dividend on the common stock. 31 Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet at December 31, 2018. c. Prepare the balance sheet at December 31, 2019. Chapter 8 - Practice Name (Type Here : In this chapter, we start to understand the different types of structures that are available for companies, and the advantages and disadvantages of each. We also delve into the recording of stock transactions. Beginning on Page 301, review the 2018 and 2019 transactions and the journal entries that are required as a result of the sale and repurchase of stock. Then on the following lines, record the journal entry (debit and credit) for each of the transactions and adjustments that are shown in the chapter in the equation format. Issuing Common Stock for more than Par Value (pg 301-302) Issuing "classified" Stock for more than Par Value (pg 302) Issuing Preferred Stock for more than Stated Value (pg 302) Issuing Stock with no Par Value (pg 302 - 303) Re-purchasing Stock (Purchasing Treasury Stock) (pg. 304) Issuing Stock previously re-purchased (Re-issuing Treasury Stock) (pg 304) 1 Recording Dividends at the Date of Declaration (pg 305) Recording Dividends at the Date of Payment (assuming declared in a prior period) (pg 306) Recording Stock Dividends (pg. 306) Chapter 8 - Apply For each of the following exercises and problems that are assigned as homework, record the journal entry that matches the equation solution you prepared on Connect. P8-23 1/5/18 1/12/18 4/5/18 12/31/18 2 12/31/18 12/15/19 3/3/19 5/5/19 12/31/19 12/31/19 3