Intermediate Financial accounting III

The common stock of Warner Inc. is currently selling at $114 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 $77 per share. 5.24 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.)

  1. 👍 0
  2. 👎 0
  3. 👁 37

Respond to this Question

First Name

Your Response

Similar Questions

  1. accounting

    Jones Company is authorized to issue 20,000 shares of no-par, $5 stated-value common stock and 5,000 shares of 9%, 100 par preferred stock. It enters into the following transaction: 1. Accepts a subscription contract to 7,000

    asked by Kathy on September 22, 2010
  2. Finance

    Jones Distributing Corp. can sell common stock for $27 per share and its investors require a 17% return. However, the administrative or flotation costs associated with selling the stock amount to $2.70 per share. What is the cost

    asked by Anonymous on May 6, 2012
  3. Finance

    National Telephone and Telegraph (NTT) Company common stock currently sells for $60 per share. NTT is expected to pay a $4 dividend during the coming year, and the price of the stock is expected to increase to $65 a year from now.

    asked by Anonymous on December 16, 2008
  4. acct

    Business is going well for Email Designers. The board of directors of this family-owned company believes that Email Designers could earn an additional $1,000,000 income before interest and taxes by expanding into new markets.

    asked by Micheal on January 29, 2011
  5. accounting

    4. Suppose a Midwest telephone company and telegraph MTT company bond maturing in one year can be purchased today for $975 assuming that that the bond is held until maturity the investor will receive $1000 principal plus 6 percent

    asked by sikander on November 16, 2008
  6. accounting

    the board of directors declares 15% stock dividend on10000 outstanding shares of$20 per common stock. Thee current market value is $25 per share. how should I journalize this entry?

    asked by jason on January 26, 2015
  7. Finance

    10. The following balance sheet extract relates to the ABC Company. Bonds Payable $1,600,000 Common Stock $5,000,000 Preferred Shares $2,550,000 Additional Information: i. The bonds are 8%, annual coupon bonds, with 9 years to

    asked by Samantha on November 24, 2016
  8. stocks

    • Emerson Electric common stock that is selling for $80 with a par value of $5. This stock recently paid a $2.10 dividend, and the firm’s earnings per share have increased from $2.40 to $4.48 in the past 5 years. An equivalent

    asked by ananoumous on March 13, 2010
  9. Intermediate Accounting

    During 2009 Bradley Corporation issued for $110 per share, 5,000 share of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of Bradley’s $25 par value common stock at the

    asked by cyndi on December 11, 2010
  10. accounting

    Finishing Touches has two classes of stock authorized: 8%, $10 par preferred and $1 par value common. The following transactions affect stockholders' equity during 2010, its first year of operations: January 2 Issue 100,000 shares

    asked by siyao on October 29, 2011

More Similar Questions