The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019.

Current assets	$540,000
Debt investments (trading)	624,000
Common stock (par value $10)	500,000
Paid-in capital in excess of par	150,000
Retained earnings	840,000

Instructions

Prepare the required journal entries for the following unrelated items.

a. A 5% stock dividend is declared and distributed at a time when the market price per share is $39.

b. The par value of the common stock is reduced to $2 with a 5-for-1 stock split.

c. A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.

Answer rating: 100% (QA)

Required A NO General Journal Debit Credit a1 Retained earnings 50000 shares 39 5 97500 Common s... View the full answer