The shareholders' equity accounts of Grouper Inc. have the following balances on December 31, 2020: Common shares,
Question:
The shareholders' equity accounts of Grouper Inc. have the following balances on December 31, 2020:
Common shares, 410,000 shares issued and outstanding $ 9,840,000
Contributed surplus 1,900,000
Retained earnings 43,300,000
Common shares are currently trading on the Toronto Stock Exchange at $54.
1. A stock dividend of 10% is declared and issued at the fair value of the shares. Prepare the appropriate journal entries.
Account Titles and Explanation
Debit
Credit
(To record declaration of stock dividend)
(To record distribution of stock dividend)
2. A stock dividend of 100% is declared and issued at the fair value of the shares. Prepare the appropriate journal entries.
Account Titles and Explanation
Debit
Credit
(To record declaration of stock dividend)
(To record distribution of stock dividend)
3. A 2-for-1 stock split is declared and issued. Prepare the appropriate journal entry.
Debit
Credit
Account Titles and Explanation
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin