Reference no: EM13576316

E15-15 (Dividend Entries) The following data were taken from the balance sheet accounts of Wickham Corporation on December 31, 2012.

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.