The stockholders equity accounts of Lawrence Company have the following balances on December 31, 2010. Common stock,
Question:
The stockholders’ equity accounts of Lawrence Company have the following balances on December 31, 2010.
Common stock, $10 par, 200,000 shares issued and outstanding............$2,000,000
Paid-in capital in excess of par.........................................................................1,200,000
Retained earnings..............................................................................................5,600,000
Shares of Lawrence Company stock are currently selling on the Midwest Stock Exchange at $37. Prepare the appropriate journal entries for each of the following cases.
(a) A stock dividend of 5% 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.
DividendA 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...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield