E15-15 (Dividend Entries) The following data were taken from the balance sheet accounts of Wickham Corporation on December 31, 2012.
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Current assets
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$540,000
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Debt investments
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624,000
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Common stock (par value $10)
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600,000
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Paid-in capital in excess of par-common stock
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150,000
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Retained earnings
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840,000
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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 price 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, 2013, and paid January 25, 2013, in bonds held as an investment. The bonds have a book value of $90,000 and a fair value of $125,000.