The stockholders’ equity accounts of Pearl Company have the following balances on December 31, 2017. Common stock, $3 par, 1,000,000 shares issued and outstanding   $3,000,000 Paid-in-capital in excess of par – common stock   5,800,000 Retained earnings   7,916,000 Shares of Pearl Company stock are currently selling on the Midwest Stock Exchange at $20. Prepare the appropriate journal entries for each of the following independent cases.   A stock dividend of 10% is declared and issued.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The stockholders’ equity accounts of Pearl Company have the following balances on December 31, 2017.

Common stock, $3 par, 1,000,000 shares issued and outstanding   $3,000,000
Paid-in-capital in excess of par – common stock   5,800,000
Retained earnings   7,916,000

Shares of Pearl Company stock are currently selling on the Midwest Stock Exchange at $20.

Prepare the appropriate journal entries for each of the following independent cases.
 
A stock dividend of 10% is declared and issued.
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