The common stock of warner inc, Financial Accounting

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The common stock of Warner Inc. is currently selling at $114 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 $77 per share. 5.24 million shares are issued and outstanding.

Prepare the necessary journal entries assuming the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a) The board votes a 2-for-1 stock split.
(b) The board votes a 100% stock dividend.

No.

Account Titles and Explanation

Debit

Credit
(a)

(b)

(To record the declaration.)

(To record the distribution.)


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