The stockholders equity accounts of Palmetto Company have the following balances on December 31, 2014. Common stock,

Question:

The stockholders’ equity accounts of Palmetto Company have the following balances on December 31, 2014.
Common stock, $1 par, 1,500,000 shares issued and outstanding ...... $ 1,500,000
Paid-in capital in excess of par ..................... 6,900,000
Retained earnings ........................... 25,750,000
Shares of Palmetto Company stock are currently selling on the Philadelphia Stock Exchange at $17.

Instructions
Prepare the appropriate journal entries for each of the following cases.
(a) A stock of 200% is declared and issued.
(b) A stock of 10% is declared and issued.
(c) A 3-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...