4. What journal entries would be made by theinvestor who bought 10,000 shares of Milancommon stock and held this investmentthroughout the time covered in requirements1, 2, and 3? 5. Refer to requirement 4.Suppose the investor sold 1,500 shares for$60 each the day after receiving the stockdividend. Prepare the investor's journal entryfor the sale of the shares. 1. The Milan Company issued 750,000 sharesof common stock, $9 par, for $30 cash pershare on March 31, 20X1. Prepare the journalentry. 2. Milan Company declared and paid acash dividend of $5 per share on March 31,20X2. Prepare the journal entry. Assume onlythe 750,000 shares from requirement 1 areoutstanding. 3. Milan Company had retainedearnings of $13 million by March 31, 20X5.The market value of the common shares was$20 each. A common stock dividend of 10%was declared, and shares were issued onMarch 31, 20X5. Prior to the stock dividend750,000 shares were outstanding. Preparethe journal entry. Also present a tabulationthat compares the stockholders? equitysection before and after the declaration andissuance of the stock dividend. Include at thebottom of the tabulation the effects on theoverall market value of the stock, the totalshares outstanding, and the number of sharesand percentage of ownership of an individualowner who originally bought 10,000 shares.

Given: The journal entries that includes the investor with 10,000 original-issue shares of S Company…

4. What journal entries would be made by the investor who bought 10,000 shares of Milan common stock and held this investment throughout the time covered in requirements 1, 2, and 3? 5. Refer to requirement 4. Suppose the investor sold 1,500 shares for $60 each the day after receiving the stock dividend. Prepare the investor's journal entry for the sale of the shares.

4. What journal entries would be made by the investor who bought 10,000 shares of Milan common stock and held this investment throughout the time covered in requirements 1, 2, and 3? 5. Refer to requirement 4. Suppose the investor sold 1,500 shares for $60 each the day after receiving the stock dividend. Prepare the investor's journal entry for the sale of the shares.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 3CE: Prepare general journal entries for the following transactions of GOTE Company: (a) Received...

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