Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The stockholders equity accounts of Buffalo Company have the following balances on December 31, 2020. Common stock, $10 par, 328,000 shares issued and outstanding $3,280,000

The stockholders equity accounts of Buffalo Company have the following balances on December 31, 2020.

Common stock, $10 par, 328,000 shares issued and outstanding $3,280,000
Paid-in capital in excess of parcommon stock 1,200,000
Retained earnings 5,720,000

Shares of Buffalo Company stock are currently selling on the Midwest Stock Exchange at $36. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when 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.)

(a) A stock dividend of 5% is (1) declared and (2) issued.
(b) A stock dividend of 100% is (1) declared and (2) issued.
(c) A 2-for-1 stock split is (1) declared and (2) issued.

No.

Account Titles and Explanation

Debit

Credit

(a) (1)

enter an account title for case A to record the declaration of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case A to record the declaration of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case A to record the declaration of stock dividends

enter a debit amount

enter a credit amount

(a) (2)

enter an account title for case A to record the issuance of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case A to record the issuance of stock dividends

enter a debit amount

enter a credit amount

(b) (1)

enter an account title for case B to record the declaration of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case B to record the declaration of stock dividends

enter a debit amount

enter a credit amount

(b) (2)

enter an account title for case B to record the issuance of stock dividends

enter a debit amount

enter a credit amount

enter an account title for case B to record the issuance of stock dividends

enter a debit amount

enter a credit amount

(c) (1)

enter an account title for case C to record the declaration of the stock split

enter a debit amount

enter a credit amount

enter an account title for case C to record the declaration of the stock split

enter a debit amount

enter a credit amount

(c) (2)

enter an account title for case C to record the issuance of the stock split

enter a debit amount

enter a credit amount

enter an account title for case C to record the issuance of the stock split

enter a debit amount

enter a credit amount

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

Financial Accounting For Decision Makers

Authors: Peter Atrill, Eddie McLaney

9th Edition

1292251255, 9781292251257

More Books

Students also viewed these Accounting questions

Question

2. How do I perform this role?

Answered: 1 week ago