Exercise 15-14 The stockholders\' equity accounts of Bridgeport Company have the

Question

Exercise 15-14 The stockholders' equity accounts of Bridgeport Company have the following balances on December 31, 2017 Common stock, $10 par, 290,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings $2,900,000 1,300,000 6,060,000 Shares of Bridgeport Company stock are currently selling on the Midwest Stock Exchange at $40. 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, slect "No Entry" for the account titles and enter O for the amounts.) (a) A stock dividend of 6% is (1) declared and (2) issued. (b) A stock dividend of 100% is (1) declared and (2) issued. (e) A 2-for-1 stock split is (1) declared and (2) issued No. Account Titles and Explanation Debit Credit

Explanation / Answer

hey there !

In the given question, we are required to pass the journal entries in the case of Dividend Declared and issued and also in the case of stock split.

Please find below the journal entries for the same....do let me know if you have any further queries..

Also, i have explained the workings in bracket of Journal entries so that you get to know how a particular amount is appearing in the entry..

Q1

Stock Dividend of 6 % is issued and Declared

Q2. 100 % Div distribution

Q3 Stock split

generally there is no entry, but we may record the following:

I hope the journal entries are now clear to you....do let me know if you have any further questions :)

All the best !!!

Particulars Amount Common Stock        29,00,000 ( $10 * 290,000) Paid in Capital in excess of Par        13,00,000 Retained Earnings        60,60,000 Current Market Price $40

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