(Dividend Entries) The following data were taken from the balance sheet accounts
ID: 2388865 • Letter: #
Question
(Dividend Entries) The following data were taken from the balance sheet accounts of Wickham Corporation on December 31,2012.Current assets $540,000
Debt investments 624,000
Common stock (par value $10) 600,000
Paid-in capital in excess of par-common stock 150,000
Retained earnings 840,000
Instructions: Prepare the required journal entries for the following unrelated items.
(a) A 5% stock dividends is declared and distributed at a time when the market price is $39 per share.
(b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock split.
(c) A dividend is declared January 5,2013, and paid January 25,2013, in bonds held as an investment. The bonds have a book value of $90,000 and a fair value of $125,000.
Explanation / Answer
A dividend is declared january 5, 2013 and paid january 25,2013 in bonds held as an investment.
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