Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 244,800 Retained earnings 480,000 The fair value of its stock is $18 per share. Accounting for Stock Dividends 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 Dr. Cr. a. Nov. 1, 2020 0 0 0 0 0 0 To record declaration of dividend. Nov. 20, 2020 0 0 0 0 To record issuance of dividend. b. Nov. 1, 2020 0 0 0 0 > 0 0 0 0 0 To record declaration of dividend. Nov. 20, 2020 0 0 0 0 0 To record issuance of stock dividend, > Nov. 20, 2020 0 . 0 0 0 0 To record issuance of cash dividend. C. Nov. 1, 2020 > 0 0 . 0 0 To record declaration of dividend. Nov. 20, 2020 0 0 0 0 To record issuance of stock dividend. Please answer all parts of the question. 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 244 800 Retained earnings 480,000 The fair value of its stock is $18 per share. Accounting for Stock Dividends Accounting for Stock Splits 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). Account Name Dr. Cr. > d. Nov. 1, 2020 0 0 0 0 To record declaration of stock split. Nov. 20, 2020 0 0 0 0 To record issuance of stock split. Total number of shares after stock split Par value per share after stock split $ 0 0 Account Name Dr. Cr. e. Nov. 1, 2020 0 0 0 0 To record declaration of stock split. Nov. 20, 2020 0 0 0 0 To record issuance of stock split. Total number of shares after stock split Par value per share after stock split $ 0 0 Account Name Dr. Cr. f. Nov. 1, 2020 0 0 0 0 To record declaration of stock split. > Nov. 20, 2020 0 0 0 0 To record issuance of stock split. Total number of shares after stock split Par value per share after stock split 0 0 Recording Stock Dividends and Stock Splits The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, 510 par, 72,000 shares outstanding $720,000 Paid-in capital in excess of par 244,800 Retained earnings 480.000 The fair value of its stock is $18 per share. Accounting for Stock Dividends 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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, George Foster, Srikant M. Datar

9th Edition

0306457229, 978-0306457227

More Books

Students also viewed these Accounting questions