Preparation of journal entries to record stock dividend and

Assignment Help Financial Accounting

Reference no: EM13356523

Preparation of Journal entries to record stock dividend and stock split.

Klein Corporation\'s stockholders\' equity section at December 31, 2001 appears below:

Stockholders\' equity Paid-in capital

Common stock, $10 par, 50,000 outstanding $500,000

Paid-in capital in excess of par	150,000
Total paid-in capital	$650,000
Retained earnings	150,000
Total stockholders\' equity	$800,000

On June 30, 2002, the board of directors of Klein Corporation declared a 15% stock dividend, payable on July 31, 2002, to stockholders of record on July 15, 2002. The fair market value of Klein Corporation\'s stock on June 30, 2002, was $12.

On December 1, 2002, the board of directors declared a 2 for 1 stock split effective December 15, 2002. Klein Corporation\'s stock was selling for $20 on December 1, 2002, before the stock split was declared. Par value of the stock was adjusted. Net income for 2002 was $240,000 and there were no cash dividends declared.

INSTRUCTIONS

Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split

Reference no: EM13356523

Questions Cloud

Preparation of bank reconciliation and passing required : preparation of bank reconciliation and passing required adjusting entries.nbspbank reconciliation and adjusting entries

Bank reconciliation statementthe following information is : bank reconciliation statement.the following information is available to reconcile acme co.s book balance of cash with

Preparation of journal entries for payroll accountinggross : preparation of journal entries for payroll accounting.gross pay for the employees of mr. scott corporation for february

Preparation of journal entriesprepare journal entries to : preparation of journal entries.prepare journal entries to record the following transactionsa. purchased 3500 of

Preparation of journal entries to record stock dividend and : preparation of journal entries to record stock dividend and stock split.klein corporations stockholders equity section

Recording journal entrieslightning fast computer company : recording journal entrieslightning fast computer company recently began operations and had the following transactions

Recording journal entries and preparation of balance : recording journal entries and preparation of balance sheet.the post-closing trial balances of two proprietorships on

Recording journal entriesat the beginning of the current : recording journal entriesat the beginning of the current season on april 1 the ledger of four oaks pro shop showed cash

Make or buy production decision makingassume that a : make or buy production decision making.assume that a division of bose makes an electronic component for its speakers.

User Account

All Pages