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Symbol Two Corporation: Stock split & property dividend JEs

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Stock splits and property dividend journal entries

Symbol Two Corporation had the following transactions:

(a) The par value of the capital stock is reduced to $0.50 with a 2-for-1 stock split.
(b) A 10% stock dividend is declared and distributed at a time when the market value of the shares
is $25 per share.
(c) A property dividend is declared September 12, 2010, and paid October 1, 2010, in common shares
in another company held as an equity investment. The equity investment has a book value of
$50,000 and a fair market value of $205,000.

Create the journal entries for these.

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Solution Summary

Your tutorial is in excel, attached, indicating how stock splits, a small stock dividend and appreciated shares in a subsidiary that are distributed as a dividends are handled. A reference is provided.

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Your tutorial is in excel, attached, indicating how stock splits, a small stock dividend and appreciated shares in a subsidiary that are distributed as a dividends are handled. ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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