No. Account Titles and Explanation Debit Credit (To record the declaration.) (To

Question

No. Account Titles and Explanation Debit Credit (To record the declaration.) (To record the distribution.) Exercise 15-13 The common stock of Warner Inc. is currently selling at $115 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $73 per share. 5.40 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) The board votes a 2-for-1 stock split. The board votes a 100% stock dividend.

Explanation / Answer

2 for 1 split no entry needed.

100% SD

Stock dividend declared

DR Retained Earnings 621,000,000

CR Stock Dividend Payable 621,000,000 (5.4 million times $115)

Stock dividend paid

DR Stock Dividend Payable 621,000,000

CR Common Stock 5,400,000 (5.4 million times par value of $10)

CR Paid In Capital in excesss of par 615,600,000

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.