Question

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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