1. ABC Company has 200,000 shares of $10 par common stock outstanding. ABC issues a 5 for 1 stock split. What are the number of common shares outstanding and what is the par value of those shares after the 5 for 1 stock split? Prepare the entry.

2. On December 1, 20X1 the directors of Green Inc. declare a $1.00 per share cash dividend on 100,000 shares of $5 par value common stock. The dividend is payable on January 10, 20X2 to shareholders of record on December 28, 20X1. Prepare the entry.

3. Cayman Corporation begins operations on March 1 by issuing 100,000 shares of $1 par value common stock for cash at $12 per share. On March 28, Cayman issues 1,500 shares of $10 par value preferred stock for cash at $30 per share. Cayman Corporation begins operations on March 1 by issuing 100,000 shares of $1 par value common stock for cash at $12 per share. On March 28, Cayman issues 1,500 shares of $10 par value preferred stock for cash at $30 per share. Prepare journal entries and stockholder’s equity of Cayman corporation.

Answer rating: 100% (QA)

1 No journal entry will be recorded for a stock split The balance sheet will reflect the new par val... View the full answer