Exercise1 The stockholders\' equity accounts of G.K. Chesterton Company have the

Question

Exercise1 The stockholders' equity accounts of G.K. Chesterton Company have the following balances on December 31, 2014. Common stock, $10 par, 401,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings $4,010,000 1,295,000 5,632,000 Shares of G.K. Chesterton Company stock are currently selling on the Midwest Stock Exchange at $38 Prepare the appropriate ournal entries for each of the following cases. Credit account titles are automatically indented when amount s entered. Do not ndent manua y.f is required, select "No Entry" for the account titles and enter O for the amounts.) entry (a) (b) (c) A stock dividend of 6% is (1) declared and (2) issued. A stock dividend of 100% is (1) declared and (2) issued. A 2-for-1 stock split is (1) declared and (2) issued.

Explanation / Answer

(All amounts in $) (a) A Stock Dividend of 6% is declared and issued Retained Earnings A/c DR 240600 To Dividends Payable A/c 240600 Dividends Payable A/c DR 240600 To Cash/Bank A/c 240600 (b) A Stock Dividend of 100% is declared and issued Retained Earnings A/c DR 4010000 To Dividends Payable A/c 4010000 Dividends Payable A/c DR 4010000 To Cash/Bank A/c 4010000 (c) A 2-for-1 stock split is declared and issued Common Stock A/c DR 8020000 To Common Stock Declared A/c 8020000 Common Stock Declared A/c DR 8020000 To Common Stock A/c 8020000

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