Exercise 15-14 The stockholders’ equity accounts of Flint Company have the follo

Question

Exercise 15-14 The stockholders’ equity accounts of Flint Company have the following balances on December 31, 2017. Common stock, $10 par, 293,000 shares issued and outstanding $2,930,000 Paid-in capital in excess of par—common stock 1,190,000 Retained earnings 5,310,000 Shares of Flint Company stock are currently selling on the Midwest Stock Exchange at $33. Prepare the appropriate journal entries for each of the following cases. (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) A stock dividend of 5% is (1) declared and (2) issued. (b) A stock dividend of 100% is (1) declared and (2) issued. (c) A 2-for-1 stock split is (1) declared and (2) issued.

Explanation / Answer

a 1 Retained earnings 483450 =293000*5%*33        Common Stock dividend distributable 146500 =293000*5%*10        Paid in capital in excess of par-Common Stock 336950 2 Common Stock dividend distributable 146500        Common Stock 146500 b 1 Retained earnings 2930000        Common Stock dividend distributable 2930000 2 Common Stock dividend distributable 2930000        Common Stock 2930000 c 1 No entry No entry 2 No entry No entry

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