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 $3,280,000Paid-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.

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Asked Jan 24, 2020
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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.
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Step 1

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Step 2

Prepare journal entry to record the declaratio...

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