common stock of Warner Inc

 
   

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The common stock of Warner Inc. is currently selling at $117 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 $73 per share. 6.01 million shares are issued and outstanding.

Prepare the necessary journal entries assuming the following

(a)

The board votes a 2-for-1 stock split.

(b)

The board votes a 100% stock dividend.