[jrwilliams13]

On Jan 1, Molini Corp had 95000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.

Apr1 issued 25000 additional shares of common stock for $17 per share
June 15 declared a cash dividend of $1 per share to stockholders of record on June 30
July 10 paid the $1 cash dividend
Dec 1 issued 2000 additional shares of common stock for $19 per share
15 declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on Dec 31

Instructions:
a) prepare the entries, if any, on each of the three dividend dates
b) how are the dividends and dividend payable reported in the financial statements prepared at Dec 31?

[morgaine300]

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[brendakj]

I'm having a hard time understanding how a stock split works, therefore I would appreciate if you could explain to me how it works and give me some examples?