accounting 494935

????????Question 1 The common stock of Warner Inc. is currently selling at $117 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 $73 per share. 6.01 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.)???? ????Question 2 On January 5, 2012, Phelps Corporation received a charter granting the right to issue 5,400 shares of $103 par value, 6% cumulative and nonparticipating preferred stock, and 52,700 shares of $10 par value common stock. It then completed these transactions. Jan. 11??Issued 21,720 shares of common stock at $18 per share.??Feb. 1??Issued to Sanchez Corp. 4,500 shares of preferred stock for the following assets: equipment with a fair value of $59,390; a factory building with a fair value of $172,900; and land with an appraised value of $326,300.??July 29??Purchased 1,850 shares of common stock at $19 per share. (Use cost method.)??Aug. 10??Sold the 1,850 treasury shares at $14 per share.??Dec. 31??Declared a $0.30 per share cash dividend on the common stock and declared the preferred dividend.??Dec. 31??Closed the Income Summary account. There was a $183,440 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….