Question

The stockholders’ equity accounts of Marin Company have the following balances on December 31, 2020. Common stock, $10 par, 318,000 shares issued and outstanding $3,180,000 Paid-in capital in excess of par—common stock 1,190,000 Retained earnings 5,560,000 Shares of Marin Company stock are currently selling on the Midwest Stock Exchange at $34.

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 0 for the amounts.)

(a) A stock dividend of 5% 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.

Answer 1

S.no	General Journal	Debit	Credit
a
1	Retained earnings 318,000 *5%*34	540600
	Common Stock Dividend distributable 318,000 *10*5%		159000
	Paid-in Capital in excess of par 540600-159000		381600
2	Common Stock Dividend Distributable	159000
	Common Stock		159000
b
1	Retained earnings	3180000
	Common Stock Dividend Distributable		3180000
	3,180,000 *100%
	Common Stock Dividend Distributable	3180000
	Common Stock		3180000
c	NO entry
	no entry