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The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019. Current assets $540,000 Debt investments (trading) 624,000 Common stock (par value $10) 500,000 Paid-in capital in excess of par 150,000 Retained earnings 840,000 Instructions Prepare the required journal entries for the following unrelated items. a.    A 5% stock dividend is declared and distributed at a time when the market price per share is $39. b.    The par value of the common stock is reduced to $2 with a 5-for-1 stock split. c.    A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.

The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019. Current assets $540,000 Debt investments (trading) 624,000 Common stock (par value $10) 500,000 Paid-in capital in excess of par 150,000 Retained earnings 840,000 Instructions Prepare the required journal entries for the following unrelated items. a.    A 5% stock dividend is declared and distributed at a time when the market price per share is $39. b.    The par value of the common stock is reduced to $2 with a 5-for-1 stock split. c.    A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 42BE: Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common...
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The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019.

Current assets
$540,000
Debt investments (trading)
624,000
Common stock (par value $10)
500,000
Paid-in capital in excess of par
150,000
Retained earnings
840,000

Instructions

Prepare the required journal entries for the following unrelated items.

a.    A 5% stock dividend is declared and distributed at a time when the market price per share is $39.

b.    The par value of the common stock is reduced to $2 with a 5-for-1 stock split.

c.    A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.

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