Acc423 Intermediate Accounting: E15-13 (a,b) The common stock of Warner Inc.

Note: Always remember to compare your questions with the ones posted below before buying.

Acc423 Intermediate Accounting

E15-13 a,b (Stock Split and Stock Dividend)
The common stock of Warner Inc. is currently selling at $110 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 $10; book value is $70 per share. Five million shares are issued and outstanding.

(a) How much is the debit to retained earnings if the board votes a 2-for-1 stock split?
(b) Prepare the necessary journal entries if the board votes a 100% stock dividend.
Powered by