The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2013.
Current assets Debt investments Common stock (par value $10) Paid-in capital in excess of par Retained earnings
$540,000 624,000 500,000 150,000 840,000
Prepare the required journal entries for the following unrelated items.
(a) A 5% stock dividend is declared and distributed at a time when the market price per share is $39.
(b) The par value of the common stock is reduced to $2 with a 5-for-1 stock split. (c) A dividend is declared January 5, 2014, and paid January 25, 2014, in bonds held as an investment.
The bonds have a book value of $100,000 and a fair value of $135,000