The stockholders’ equity accounts of G.K. Chesterton Company
have the following balances on December 31, 2020.
|Common stock, $10 par, 300,000 shares issued and outstanding||$3,000,000|
|Paid-in capital in excess of par—common stock||1,200,000|
Shares of G.K. Chesterton Company stock are currently selling on the Midwest Stock Exchange at $37.
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.|
a) Journal entry
|1||Stock dividend (300000*5%*37)||555000|
|Common Stock dividend distributable||150000|
|Paid in capital in excess of par value-Common Stock||405000|
|2||Common Stock dividend distributable||150000|
b) Journal entry
|1||Stock dividend (300000*100%*10)||3000000|
|Common Stock dividend distributable||3000000|
|2||Common Stock dividend distributable||3000000|
c) Journal entry
|1||No Journal entry|
|2||No Journal entry|
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