Exercise 13-41

template_week_5.xlsx

Exercise 13-41
	Enter the appropriate amounts/formulas in the blue-shaded cells, or select from the drop-down list.
(a)	Journal entries - 10% stock dividend recorded at market value:
		Account Title	Debit		Credit





		Supporting calculation:
		Outstanding shares
		x Stock dividend declared (percentage)
		Additional shares
		x New market value
		Total market value of new shares
(b)	Journal entries - 50% stock dividend recorded at par value:
		Account Title	Debit		Credit




		Supporting calculation:
		Outstanding shares
		x Stock dividend declared (percentage)
		Additional shares
		x Par value
		Total value of new shares at par
(c)	Journal entries - a 2-for-1 stock split:
		Account Title	Debit		Credit


		A memorandum entry would disclose the
		decrease in par value from $6 to		par value
		and the increase in shares oustanding
		from 50,000 to		shares outstanding