Stock Dividends and Stock Splits
The capital accounts for Shop Right Market on June 30, 2008, are as follows:
|
Common stock, $5 par, 40,000 shares issued and outstanding |
$ 200,000 |
|
Paid in capital in excess of par |
835,000 |
|
Retained earnings |
2,160,000 |
Shares of the company’s stock are selling at this time at $22. What entries would you make in each of the following cases?
(a) A 10% stock dividend is declared and issued.
(b) A 50% stock dividend is declared and issued.
(c) A 2 for 1 stock split is declared and issued.