Question
M. Corp had the following account balances on December 31, 2019: ($ in 000s) Common stock, 125 million shares at $1 par $125,000 Additional Paid-in
M. Corp had the following account balances on December 31, 2019:
($ in 000s)
Common stock, 125 million shares at $1 par $125,000
Additional Paid-in capital - excess of par - Common Stock $560,000
Retained earnings. $790,000
Misawa Corp completed the following transactions during 2020:
1. February 14, the board of directors declared a cash dividend of $0.25 per share on its common shares, payable to shareholders of record March 1, to be paid March 15.
2. On March 21, the board of directors declared a property dividend consisting of corporate bonds of Lopez Corporation that Misawa Corp was holding as an investment. The bonds were originally purchased for $1.5 million were classified as held-to-maturity investments. The bonds currently have a fair value of $1.65 million. The property dividend was payable to shareholders of record March 31, to be distributed April 14.
3. On June 12, the corporation declared and distributed a 3% common stock dividend (when the market value of the common stock was $17 per share). Shareholders with fractional shares were paid cash (totaling 250,000 equivalent whole shares).
4. On October 15, the board of directors declared and distributed a 3-for-2 stock split effected in the form of a 50% stock dividend when the market value of the common stock was $18 per share.
Prepare the journal entries that Misawa Corp recorded during this period for these transactions.
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