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Unformatted text preview: 45,000
1,540,000 If Stevenson Enterprises declares a 2for1 stock split, no journal entry is necessary.
Common stock ($3 par value, 1,300,000 shares authorized,
140,000 shares issued, 120,000 shares outstanding, and
20,000 shares held as treasury stock)
Additional paidin capital (C/S)
Total stockholders' equity c. $ $ $ 456,000
1,540,000 Stevenson Enterprises does not need to prepare any journal entry for the stock split. If Stevenson
Enterprises subsequently declares and pays a 10% stock dividend, the company would have to make the
Stock Dividend (–SE) 150,000a
Common Stock (+SE) 36,000b
Additional PaidIn Capital, Common Stock (+SE)
Declared and issued 10% stock dividend.
b $36,000 = [(60,000 shares initially outstanding + 60,000 shares issued in stock
split) 10%] $12.50 per share
= 12,000 new shares issued $3 par value per share P12–7 Concluded Stockholders’ equity:
Common stock ($3 par value, 1,300,000 shares...
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