The stockholders equity accounts of G.K. Chesterton Company have the following balances on December 31, 2020. Common
Question:
The stockholders’ equity accounts of G.K. Chesterton Company have the following balances on December 31, 2020.
Common stock, $10 par, 300,000 shares issued and outstanding...........$3,000,000
Paid-in capital in excess of par—common stock...........................................1,200,000
Retained earnings.............................................................................................5,600,000
Shares of G.K. Chesterton Company stock are currently selling on the Midwest Stock Exchange at $37.
Instructions
Prepare the appropriate journal entries for each of the following cases.
a. A stock dividend of 5% 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.
DividendA 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...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1119503668
17th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel