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Exercise 15-13 The common stock of Marigold Inc. is currently selling at $114 per share. The...

Exercise 15-13

The common stock of Marigold Inc. is currently selling at $114 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $69 per share. 9.70 million shares are issued and outstanding.

Prepare the necessary journal entries assuming the following. (Enter amounts in dollars. 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 0 for the amounts.)

(a) The board votes a 2-for-1 stock split.
(b) The board votes a 100% stock dividend.

No.

Account Titles and Explanation

Debit

Credit
(a)

(b)

(To record the declaration)

(To record the distribution)
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Answer #1

9700000 10 100% 69 Debit credit 0 outstanding shares par value of stock stock dividend book value journal entries Account tit

working note

stock dividend = 100%*9700,000*10 = $97,000,000

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