Part 2: Record the stock dividend assuming a large (100%) stock dividend. Part 3

Question

Part 2: Record the stock dividend assuming a large (100%) stock dividend.

Part 3: Record the stock dividend assuming a 2-for-1 stock split.

| | + Mezto. mheducation.com / hm.tpx-Homework 9 Reader Grades FIN 2123-PERSONAL FINANCE-SEC TH 513 - Okla. Homework 9 Search Q&A; | Chegg.com Question 4 (of 7) Save & Exit Submit 4 value: 10.00 points On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 13,000, $4 par, common shares. The market price of the common stock is $33 on this date Required 1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet 023 Record the stock dividend assuming a small (10%) stock dividend Date General Journal Debit Credit September 01 *Enter debits before credits done clear entry record entry

Explanation / Answer

Part no. Account title Debit credit 1 Retained earning    (1300*33) 42900 Stock dividend distributable 42900 [Being 10% stock dividend declared ,13000*.10 = 1300] 2 Retained earning    (13000*4) 52000 Stock dividend distributable 52000 [Being 100% stock dividend declared ,13000*1 = 13000] 3 Retained earning    (2600*16.5 ) 42900 Stock dividend distributable 42900 [Stock split : 13000*2 = 26000 ,then stock dividend 26000*.10= 2600 ,market price = 33* 1/2 = Retained earning    (26000*2 ) 52000 Stock dividend distributable 52000 [new par value : 4*1/2 = 2 ,Number of shares =13000*100% =13000]

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