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

Question

Exercise 15-14 The stockholders' equity accounts of Shamrock 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 Shamrock 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, select "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. (c) A 2-for-1 stock split is (1) declared and (2) issued No. Account Titles and Explanation Debit Credit

Explanation / Answer

a-1 Retained earnings 696000 =290000*6%*40       Common stock dividend distributable 174000 =290000*6%*10        Paid in capital in excess of par 522000 a-2 Common stock dividend distributable 174000         Common stock 174000 b-1 Retained earnings 2900000       Common stock dividend distributable 2900000 Common stock dividend distributable 2900000         Common stock 2900000 c-1 No entry c-2 No entry

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