The following data were taken from the balance sheet accounts of Bedard Corporation on December 31, 2012:

Question:

The following data were taken from the accounts of Bedard on December 31, 2012: Current assets........... $1,040,000
Investments—trading ................. 824,000
Common shares (no par value, no authorized limit, 600,000
shares issued and outstanding) .............. 6,000,000
Contributed surplus ................. 350,000
Retained earnings .................. 1,840,000
Instructions
Prepare the required journal entries for the following unrelated items.
(a). A 6% stock is declared and distributed at a time when the shares’ market value is $48 per share.
(b). A 4-for-1 stock split is effected.
(c). A in kind is declared on January 5, 2012, and paid on January 25, 2012, in bonds that were classified as trading. The bonds have a carrying amount of $100,000 (equal to cost) and a fair value of $165,000.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...