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Social ScienceThe stockholders’ equity accounts of Bonita Company have the following balances on December 31, 2020.Common stock, $10 par, 328,000 shares issued and outstanding $3,280,000Paid-in capital in excess of par—common stock 1,200,000Retained earnings 5,720,000Shares of Bonita Company stock are currently selling on the Midwest Stock Exchange at $36.Prepare the appropriate journal entries for each of the following cases.(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.
The stockholders’ equity accounts of Bonita Company have the following balances on December 31, 2020.
| Common stock, $10 par, 328,000 shares issued and outstanding | $3,280,000 | |
| Paid-in capital in excess of par—common stock | 1,200,000 | |
| Retained earnings | 5,720,000 |
Shares of Bonita Company stock are currently selling on the Midwest Stock Exchange at $36.
Prepare the appropriate journal entries for each of the following cases.
| (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. |
Expert Answer
Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.
Prepare journal entry to record the declaratio...
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