Question

Exercise 15-14 The stockholders’ equity accounts of Flint Company have the following balances on December 31, 2017. Common stock, $10 par, 293,000 shares issued and outstanding $2,930,000 Paid-in capital in excess of par—common stock 1,190,000 Retained earnings 5,310,000 Shares of Flint Company stock are currently selling on the Midwest Stock Exchange at $33. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) A stock dividend of 5% is (1) declared and (2) issued. (b) A stock dividend of 100% is (1) declared and (2) issued. (c) A 2-for-1 stock split is (1) declared and (2) issued.

Answer 1

a
1	Retained earnings	483450		=293000*5%*33
	Common Stock dividend distributable		146500	=293000*5%*10
	Paid in capital in excess of par-Common Stock		336950
2	Common Stock dividend distributable	146500
	Common Stock		146500
b
1	Retained earnings	2930000
	Common Stock dividend distributable		2930000
2	Common Stock dividend distributable	2930000
	Common Stock		2930000
c
1	No entry
	No entry
2	No entry
	No entry