The common stock of Warner Inc. is currently selling at $125per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $8; book value is $71per share.6.09million shares are issued and outstanding.
Prepare the necessary journal entries assuming the following.
(If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.
Credit account titles are automatically indented when amount is entered. Do not indent manually.)
The common stock of Warner Inc. is currently selling at $125 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $8; book value is $71 per share. 6.09 million shares are issued and outstanding.??Prepare the necessary journal entries assuming the following. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a)??The board votes a 2-for-1 stock split.??(b)??The board votes a 100% stock dividend.?? No.?Account Titles and Explanation?Debit?Credit??(a)??????????(b)???????????(To record the declaration.)???????????????(To record the distribution.)???? 2) On January 5, 2012, Phelps Corporation received a charter granting the right to issue 5,500 shares of $102 par value, 7% cumulative and nonparticipating preferred stock, and 54,500 shares of $11 par value common stock. It then completed these transactions. Jan. 11??Issued 21,960 shares of common stock at $17 per share.??Feb. 1??Issued to Sanchez Corp. 5,000 shares of preferred stock for the following assets: equipment with a fair value of $55,940; a factory building with a fair value of $173,800; and land with an appraised value of $333,300.??July 29??Purchased 1,980 shares of common stock at $20 per share. (Use cost method.)??Aug. 10??Sold the 1,980 treasury shares at $15 per share.??Dec. 31??Declared a $0.40 per share cash dividend on the common stock and declared the preferred dividend.??Dec. 31??Closed the Income Summary account. There was a $177,450 net income.???(a) Record the journal entries for the transactions listed above. (Round answers to 0 decimal places, e.g. 125. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order…
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