The shareholders' equity accounts of Abbasi Inc. have the following balances on December 31, 2017: Common shares,

Question:

The shareholders' equity accounts of Abbasi Inc. have the following balances on December 31, 2017:
Common shares, 400,000 shares issued and outstanding .................. $10,000,000
Contributed surplus ................................................................... 300,000
Retained earnings ................................................................. 42,400,000
Common shares are currently selling on the Toronto Stock Exchange at $59.
Instructions
Prepare the appropriate journal entries for each of the following cases.
(a) A stock of 10% is declared and issued.
(b) A stock of 100% is declared and issued.
(c) A 2-for-1 stock split is declared and issued.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...