(Dividend Entries) The following data were taken from the balance sheet accounts of Wickham Corporation on December 31, 2012.
|
Current assets |
$540,000 |
|
Debt investments |
624,000 |
|
Common stock (par value $10) |
600,000 |
|
Paid in capital in excess of par—common stock |
150,000 |
|
Retained earnings |
840,000 |
Instructions
Prepare the required journal entries for the following unrelated items.
(a) A 5% stock dividend is declared and distributed at a time when the market price is $39 per share.
(b) The par value of the capital stock is reduced to $2 with a 5 for 1 stock split.
(c) A dividend is declared January 5, 2013, and paid January 25, 2013, in bonds held as an investment. The bonds have a book value of $90,000 and a fair value of $125,000.