The following data were taken from the SFP accounts of Bedard Corporation on December 31, 2020: Current
Question:
The following data were taken from the SFP accounts of Bedard Corporation on December 31, 2020:
Current assets......................................................$1,040,000
FV-NI investments.....................................................824,000
Common shares.....................................................6,000,000
(unlimited authorized, 600,000 shares issued and outstanding)
Contributed surplus..................................................350,000
Retained earnings...................................................1,840,000
Instructions
Prepare the required journal entries for the following unrelated events in January 2021.
a. A 6% stock dividend is declared at their fair value and distributed at a time when the shares' fair value is $48 per share.
b. A 4-for-1 stock split is effected.
c. A dividend in kind is declared on January 8, 2021, and paid on January 28, 2021, in FV-NI investments. The investments have a carrying amount of $160,000 (fair value at December 31, 2020) and a January 8 fair value of $165,000.
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy