HW 15_ Q(2)_Q(4) - Q2) The stockholders equity accounts of...

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Unformatted text preview: Q2) The stockholders equity accounts of Palmetto Company have the following balances on December 31, 2007. Common stock, $1 par, 1,500,000 shares issued and outstanding $ 1,500,000 Paid-in capital in excess of par 6,900,000 Retained earnings 25,750,000 Shares of Palmetto Company stock are currently selling on the Philadelphia Stock Exchange at $17. Instructions Prepare the appropriate journal entries for each of the following cases. (a) A stock dividend of 200% is declared and issued. (b) A stock dividend of 10% is declared and issued. (c) A 3-for-1 stock split is declared and issued. (a) Retained Earnings (3,000,000 X $1)......................................... 3,000,000 Common Stock Dividend Distributable..................................................................... 3,000,000 Common Stock Dividend Distributable................................... 3,000,000 Common Stock.................................................................... 3,000,000 (b) Retained Earnings (150,000 X $17).......................................... 2,550,000 Common Stock Dividend Distributable..................................................................... 150,000 Paid-in Capital in Excess of Par......................................... 2,400,000 Common Stock Dividend Distributable................................... 150,000 Common Stock.................................................................... 150,000 (c) No entry; the par value becomes $0.33, and the number of shares outstanding increases to 4,500,000. Q3) The outstanding capital stock of York Brands Corporation consists of 10,000 shares of...
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This note was uploaded on 04/09/2010 for the course ACC 5110 taught by Professor Lee during the Winter '10 term at Wayne State University.

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HW 15_ Q(2)_Q(4) - Q2) The stockholders equity accounts of...

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