Reference no: EM132960717

Glenn Corporation's shareholders' equity section at December 31, 2017 appears below:

Shareholders' equity

Share capital

Common shares, 82,000 issued .................... $ 799,860

Retained earnings........................ 150,000

Accumulated other comprehensive income.................... 450,000

Total shareholders' equity............................ $1,399,860

• On June 30, 2018, the board of directors declared a 15% stock dividend, distributable on July 31 to shareholders of record on July 15. The fair value of Glenn Corporation's shares on June 30 was $14.
• On December 1, 2018, the board of directors declared a 2-for-1 stock split effective December 15. Glenn Corporation's shares were selling for $20 on December 1, 2018, before the stock split was declared. Net income for 2018 was $230,000 and there were no cash dividends declared.

Problem (a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split. If no entry is needed write "No entry required."

Problem (b) Prepare all closing entries required on December 31, 2018.