Question

Practice Exercise 15-5

The stockholders’ equity accounts of Monty Company have the following balances on December 31, 2017.

Common stock, $3 par, 1,000,000 shares issued and outstanding		$3,000,000
Paid-in-capital in excess of par – common stock		5,700,000
Retained earnings		7,799,000

Shares of Monty Company stock are currently selling on the Midwest Stock Exchange at $24.

Prepare the appropriate journal entries for each of the following independent cases.

A stock dividend of 10% is declared and issued. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

A stock dividend of 50% is declared and issued. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

A 2-for-1 stock split is declared and issued. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1