The shareholders’ equity accounts of Chatsworth Inc. have the following balances on December 31, 2012:
Common shares, 400,000 shares issued and outstanding...... $10,000,000
Contributed surplus ...................... 2,300,000
Retained earnings ..................... 42,400,000
Common shares are currently selling on the Prairie Stock Exchange at $59.
Instructions
Prepare the appropriate journal entries for each of the following cases.
(a). A stock dividend of 10% is declared and issued.
(b). A stock dividend of 100% is declared and issued.
(c). A 2-for-1 stock split is declared and issued.