Question
The following data were taken from the balance sheet accounts of Splish Corporation on December 31, 2016. Current assets $515,000 Debt investments 640,000 Common stock
The following data were taken from the balance sheet accounts of Splish Corporation on December 31, 2016.
Current assets $515,000
Debt investments 640,000
Common stock (par value $10) 475,000
Paid-in capital in excess of par 145,000
Retained earnings 796,000
Prepare the required journal entries for the following unrelated items.
(a) A 4% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $41.
(b) The par value of the common stock is reduced to $2 with a 5-for-1 stock split.
(c) A dividend is declared January 5, 2017, and paid January 25, 2017, in bonds held as an investment. The bonds have a book value of $92,000 and a fair value of $131,000. ( To record change in value of bonds and to record declaration of dividends)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started