Question
On December 31, 2024, Crane Landscapings common shares were trading for $15, and the company had the following shareholders equity accounts: Common Shares (no par
On December 31, 2024, Crane Landscaping’s common shares were trading for $15, and the company had the following shareholder’s equity accounts:
| Common Shares (no par value, unlimited authorized, 970,000 issued, and outstanding) | $4,850,000 | |
| Contributed Surplus (Common Shares) | 1,120,000 | |
| Retained earnings | 18,130,000 |
Prepare the journal entries for the following independent transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
| (a) | A stock dividend of 20% is declared at their fair value on June 1, 2025 and issued on June 30 to the shareholders of record on June 15. The common shares were trading for $15 on June 1, 2025. | |
| (b) | A stock dividend of 100% is declared on June 1, 2025 at their fair value and issued on June 30 to the shareholders of record on June 15. The common shares were trading for $15 on June 1, 2025. | |
| (c) | A 2-for-1 stock split is declared on June 1, 2025 at their fair value and issued on June 30 to the shareholders of record on June 15. |
On December 31, 2024, Crane Landscaping’s common shares were trading for $15, and the company had the following shareholder’s equity accounts:
| Common Shares (no par value, unlimited authorized, 970,000 issued, and outstanding) | $4,850,000 | |
| Contributed Surplus (Common Shares) | 1,120,000 | |
| Retained earnings | 18,130,000 |
Prepare the journal entries for the following independent transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
| (a) | A stock dividend of 20% is declared at their fair value on June 1, 2025 and issued on June 30 to the shareholders of record on June 15. The common shares were trading for $15 on June 1, 2025. | |
| (b) | A stock dividend of 100% is declared on June 1, 2025 at their fair value and issued on June 30 to the shareholders of record on June 15. The common shares were trading for $15 on June 1, 2025. | |
| (c) | A 2-for-1 stock split is declared on June 1, 2025 at their fair value and issued on June 30 to the shareholders of record on June 15. |
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
