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Name: SOLUTION

Enter the appropriate account titles in the shaded cells in columns C and D. Enter the appropriate amounts in the shaded cells in columns F and H. 1) a. Journal entries - 10% stock dividend recorded at market value Retained Earnings 80,000 Stock Dividends Distributable Paid-In Capital in Excess of Par Stock Dividends Distributable Common Stock, $5 par 20,000 20,000

20,000 60,000

b. Journal entries - 50% stock dividend recorded at par value Retained Earnings 100,000 Stock Dividends Distributable Stock Dividends Distributable Common Stock, $5 par 100,000

100,000

100,000

c. Journal entries - a 2 for 1 stock split No journal entry needed. A memorandum entry would disclose the decrease in par value (from $5 to $2.50) and the increase in shares outstanding (from 40,000 to 80,000).