Recording Stock Dividends and Stock Splits The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10 par, 72,000 shares outstanding $720,000 Paid-in capital in excess of par Retained earnings The fair value of its stock is $18 per share. Accounting for Stock Dividends 244,800 480,000 Accounting for Stock Splits Prepare journal entries for the following three separate scenarios. a. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. b. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. Of the 7,200 stock dividend shares, 6,720 shares are whole shares and 480 shares are fractional shares. It is the company's policy to pay out fractional shares in cash. c. The company declares (November 1, 2020) and issues (November 20, 2020) a stock split effected in the form of a 100% stock dividend. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name a. Nov. 1, 2020 Retained Earnings Common Stock Dividends Distributable Paid-in Capital in Excess of Par-Common Stock To record declaration of dividend. Nov. 20, 2020 Common Stock Dividends Distributable Common Stock To record issuance of dividend. b. Nov. 1, 2020 Retained Earnings Common Stock Dividends Distributable Dividends Payable Paid-in Capital in Excess of Par-Common Stock To record declaration of dividend. Nov. 20, 2020 Common Stock Dividends Distributable Common Stock To record issuance of stock dividend. Nov. 20, 2020 Dividends Payable Cash To record issuance of cash dividend. Dr. Cr. 129,600 72,000 0 57,600 72,000 0 72,000 129,600 0 0 67,200 0~ 0 67,200 0 67,200 x 0 x c. Nov. 1, 2020 Retained Earnings Common Stock Dividends Distributable To record declaration of dividend. Nov. 20, 2020 Common Stock Dividends Distributable Common Stock To record issuance of stock dividend. 720,000 0 720,000 720,000 0 0 720,000 For each of the following three separate scenarios, (1) record the journal entry and (2) determine the total number of shares and the par value per share after the stock split. d. The company declares (November 1, 2020) and issues (November 20, 2020) a 2-for-1 stock split. e. The company declares (November 1, 2020) and issues (November 20, 2020) a 5-for-1 stock split. f. The company declares (November 1, 2020) and issues (November 20, 2020) a 3-for-1 reverse stock split. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). d. Nov. 1, 2020 N/A N/A Account Name To record declaration of stock split. Nov. 20, 2020 N/A N/A To record issuance of stock split. Total number of shares after stock split Par value per share after stock split e. Nov. 1, 2020 N/A N/A x x Account Name To record declaration of stock split. Nov. 20, 2020 N/A N/A To record issuance of stock split. Total number of shares after stock split Par value per share after stock split f. Nov. 1, 2020 N/A N/A x Dr. Cr. 0 0~ 0 Dr. 0~ 0 0 0 0 Cr. 0 0 0~ 0 0 Account Name Dr. Cr. To record declaration of stock split. Nov. 20, 2020 N/A N/A To record issuance of stock split. Total number of shares after stock split Par value per share after stock split x x 0