The shareholders equity accounts of Chatsworth Inc. have the following balances on December 31, 2012: Common shares,

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The shareholders’ equity accounts of Chatsworth Inc. have the following balances on December 31, 2012:
Common shares, 400,000 shares issued and outstanding...... $10,000,000
Contributed surplus ...................... 2,300,000
Retained earnings ..................... 42,400,000
Common shares are currently selling on the Prairie Stock Exchange at $59.
Instructions
Prepare the appropriate journal entries for each of the following cases.
(a). A stock dividend of 10% is declared and issued.
(b). A stock dividend 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...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0470161012

9th Canadian Edition, Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

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