Question - The common stock of Warner Inc. is currently selling at $123 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $8; book value is $70 per share. 5.71 million shares are issued and outstanding.
Prepare the necessary journal entries assuming the following.
(a) The board votes a 2-for-1 stock split.
(b) The board votes a 100% stock dividend.