The common stock of Alexander Hamilton Inc. is currently selling at $111 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 $76 per share. 9.16 million shares are issued and outstanding.
Prepare the necessary journal entries assuming the following.
a. The board votes a 2-for-1 stock split -2 entries
b. The board votes a 100% stock dividend
- 2 entries to record the declaration
- 2 entries to record the distribution