Question

The following data were taken from the balance sheet accounts of Symbol Two Corporation on June 30, 2014.
Current assets ............ $125,000
Investments ............ 365,000
Common stock (par value $1) ..... 70,000
Paid-in capital in excess of par .... 680,000
Retained earnings ......... 963,000

Instructions
Prepare the required journal entries for the following unrelated items.
(a) The par value of the capital stock is reduced to $0.50 with a 2-for-1 stock split.
(b) A 10% stock dividend is declared and distributed at a time when the market value of the shares is $25 per share.
(c) A property dividend is declared September 12, 2014, and paid October 1, 2014, in common shares in another company held as an equity investment. The equity investment has a book value of $50,000 and a fair market value of $205,000.



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  • CreatedJune 07, 2013
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