The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10...

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The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10 par, 72,000 shares outstanding $720,000 Paid-in capital in excess of par 244,800 Retained earnings 480,000 The fair value of its stock is $18 per share. Accounting for Stock Dividends Accounting for Stock Splits Prepare journal entries for the following three separate scenarios. a. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. b. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. Of the 7.200 stock dividend shares, 6,720 shares are whole shares and 480 shares are fractional shares. It is the company's policy to pay out fractional shares in cash. c. The company declares (November 1, 2020) and issues (November 20, 2020) a stock split effected in the form of a 100% stock dividend. • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. • Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Dr. Nov 1, 2020 Nov. 20, 2020 b. Nov. 1, 2020 Nov. 20, 2020 Nov 20, 2020 c Nov. 1, 2020 Nov. 20, 2020 To record declaration of dividend To record issuance of dividend. To record declaration of dividend. To record issuance of stock dividend To record issuance of cash dividend. To record declaration of dividend. To record issuance of stock dividend. ● + → • ÷ 0000 • + 00 + + 0000 + + ● Cr. Recording Stock Dividends and Stock Splits The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10 par, 72,000 shares outstanding $720,000 Paid-in capital in excess of par 244,800 Retained earnings 480,000 The fair value of its stock is $18 per share. Accounting for Stock Dividends Accounting for Stock Splits For each of the following three separate scenarios, (1) record the journal entry and (2) determine the total number of shares and the par value per share after the stock split. d. The company declares (November 1, 2020) and issues (November 20, 2020) a 2-for-1 stock split. e. The company declares (November 1, 2020) and issues (November 20, 2020) a 5-for-1 stock split. f. The company declares (November 1, 2020) and issues (November 20, 2020) a 3-for-1 reverse stock split. • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. • Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). d. Nov. 1, 2020 Nov. 20, 2020 e. Nov. 1, 2020 Total number of shares after stock split Par value per share after stock split Nov. 20, 2020 f. Nov. 1, 2020 To record declaration of stock split. Nov, 20, 2020 Account Name To record issuance of stock split. To record issuance of stock split. Total number of shares after stock split Par value per share after stock split Account Name To record declaration of stock split. $ Account Name Total number of shares after stock split Par value per share after stock split To record declaration of stock split. To record issuance of stock split. $ ♦ ♦ ♦ ♦ + + + ♦ Dr. Dr. Dr. Cr. Cr. Cr. The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10 par, 72,000 shares outstanding $720,000 Paid-in capital in excess of par 244,800 Retained earnings 480,000 The fair value of its stock is $18 per share. Accounting for Stock Dividends Accounting for Stock Splits Prepare journal entries for the following three separate scenarios. a. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. b. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. Of the 7.200 stock dividend shares, 6,720 shares are whole shares and 480 shares are fractional shares. It is the company's policy to pay out fractional shares in cash. c. The company declares (November 1, 2020) and issues (November 20, 2020) a stock split effected in the form of a 100% stock dividend. • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. • Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name Dr. Nov 1, 2020 Nov. 20, 2020 b. Nov. 1, 2020 Nov. 20, 2020 Nov 20, 2020 c Nov. 1, 2020 Nov. 20, 2020 To record declaration of dividend To record issuance of dividend. To record declaration of dividend. To record issuance of stock dividend To record issuance of cash dividend. To record declaration of dividend. To record issuance of stock dividend. ● + → • ÷ 0000 • + 00 + + 0000 + + ● Cr. Recording Stock Dividends and Stock Splits The records of Dixie Corporation showed the following balances on November 1, 2020. Common stock, $10 par, 72,000 shares outstanding $720,000 Paid-in capital in excess of par 244,800 Retained earnings 480,000 The fair value of its stock is $18 per share. Accounting for Stock Dividends Accounting for Stock Splits For each of the following three separate scenarios, (1) record the journal entry and (2) determine the total number of shares and the par value per share after the stock split. d. The company declares (November 1, 2020) and issues (November 20, 2020) a 2-for-1 stock split. e. The company declares (November 1, 2020) and issues (November 20, 2020) a 5-for-1 stock split. f. The company declares (November 1, 2020) and issues (November 20, 2020) a 3-for-1 reverse stock split. • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. • Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). d. Nov. 1, 2020 Nov. 20, 2020 e. Nov. 1, 2020 Total number of shares after stock split Par value per share after stock split Nov. 20, 2020 f. Nov. 1, 2020 To record declaration of stock split. Nov, 20, 2020 Account Name To record issuance of stock split. To record issuance of stock split. Total number of shares after stock split Par value per share after stock split Account Name To record declaration of stock split. $ Account Name Total number of shares after stock split Par value per share after stock split To record declaration of stock split. To record issuance of stock split. $ ♦ ♦ ♦ ♦ + + + ♦ Dr. Dr. Dr. Cr. Cr. Cr.

Answer rating: 100% (QA)

Important Point A stock split or reverse stock split does not affect the total par ... View the full answer