Question: The following data were taken from the balance sheet accounts of

The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2007.
Current assets ........ $540,000
Investments .......... 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 value of the shares is $39 per share.
(b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock split.
(c) A dividend is declared January 5, 2008, and paid January 25, 2008, in bonds held as an investment. The bonds have a book value of $100,000 and a fair market value of $135,000.


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  • CreatedMay 16, 2012
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