Question:\nThe following data were taken from the balance sheet accounts of Masefield\nCorporation on December 31, 2013.\nCurrent assets $540,000\nDebt in
Question:
\r\nThe following data were taken from the balance sheet accounts of Masefield
\r\nCorporation on December 31, 2013.
\r\nCurrent assets $540,000
\r\nDebt investments 624,000
\r\nCommon stock (par value $10) 500,000
\r\nPaid-in capital in excess of par 150,000
\r\nRetained earnings 840,000
\r\nInstructions
\r\nPrepare the required journal entries for the following unrelated items.
\r\n(a) A 5% stock dividend is declared and distributed at a time when the market price per share is $39.
\r\n(b) The par value of the common stock is reduced to $2 with a 5-for-1 stock split.
\r\n(c) A dividend is declared January 5, 2014, and paid January 25, 2014, in bonds held as an investment.
\r\nThe bonds have a book value of $100,000 and a fair value of $135,000.