Question

The following data were taken from the balance sheet accounts of Bedard Corporation 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 dividend 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 dividend 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.


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  • CreatedAugust 23, 2015
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