Question

The stockholders equity accounts of Pronghorn Company have the following balances on December 31, 2017.

Common Stock $10 par 310000 shares issued and outstanding 3100000

Paid in Capital in excess of par common stock 1190000

Retained Earnings 5160000

Shares of Pronghorn Company stock are currently selling on the Midwest Stock Exchange at $41

a. A stock dividend of 7% is 1 declared and 2 issued

b. A stock dividend of 100% is 1 declared and 2 issued.

c. A 2 for 1 split is 1 declared and 2 issued.

Answer 1

a
1	Retained Earnings	889700		=310000*7%*41
	Common Stock Dividend Distributable		217000	=310000*7%*10
	Paid-in Capital in Excess of Par-common		672700
2	Common Stock Dividend Distributable	217000
	Common Stock		217000
b
1	Retained Earnings	3100000		=310000*100%*10
	Common Stock Dividend Distributable		3100000
2	Common Stock Dividend Distributable	3100000
	Common Stock		3100000
c
1	NO entry	0
	NO entry		0
2	NO entry	0
	NO entry		0