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