E15-15 (Dividend Entries) The following data
were taken from the balance sheet accounts of Masefield Corporation on December
31, 2013.
Current assets $540,000
Investments $624,000
Common stock, (par value $10) $500,000
Paid-in capital in excess of par $150,000
Retained earnings $840,000
Instructions
Prepare the required journal entries
for the following unrelated items:
(a) A 5% stock dividend is declared and distributed at a time when the
market value of the shares is $39 per share.
(b) The par value of the capital stock is reduced to $2 with a 5-for-1 stock
split
(c) A dividend is declared January 5, 2014, and paid January 25, 2014, in
bonds held as an investment. The bonds have a book value of $100,000 and a fair
value of $135,000
TUTORIAL PREVIEW
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Retained Earnings (50,000 x 5.00 x $39.00)
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97,500
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Common Stock Dividend Distributable
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25,000
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File name: E15-15 Masefield
Corporation.xls File type: doc PRICE: $6
