Question

The stockholders' equity accounts of Riverbed Company have the following balances on December 31, 2020. Common stock, $10 par, 323,000 shares issued and outstanding $3,230,000 Paid-in capital in excess of par-common stock 1,250,000 Retained earnings 5,590,000 Shares of Riverbed Company stock are currently selling on the Midwest Stock Exchange at $38. 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) Astock dividend of 5% is (1) declared and (2) issued. (b) A stock dividend of 100% is (1) declared and (2) issued. (c) A2-for-1 stock split is (1) declared and (2) issued. No. Account Titles and Explanation Debit Credit (a) (1) (a) (2) (b) (1) (b) (2) (C) (1) (c) (2)

Answer 1

Journal entry

No	General Journal	Debit	Credit
a1	Stock dividend (323000*5%*38)	613700
	Common Stock dividend distributable		161500
	Paid in capital in excess of par value-Common Stock		452200
a2	Common Stock dividend distributable	161500
	Common Stock		161500
b1	Stock dividend	3230000
	Common Stock dividend distributable		3230000
b2	Common Stock dividend distributable	3230000
	Common Stock		3230000
c1	No Journal entry
c2	No Journal entry