(Entries for Stock Dividends and Stock Splits) The stockholders’ equity accounts of Lawrence Company have the following balances on December 31, 2012.
|
Common stock, $10 par, 200,000 shares issued and outstanding |
$2,000,000 |
|
Paid in capital in excess of par—common stock |
1,200,000 |
|
Retained earnings |
5,600,000 |
Shares of Lawrence Company stock are currently selling on the Midwest Stock Exchange at $37.
Instructions
Prepare the appropriate journal entries for each of the following cases.
(a) A stock dividend of 5% is declared and issued.
(b) A stock dividend of 100% is declared and issued.
(c) A 2 for 1 stock split is declared and issued.