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E15.13 (LO 3) (Stock Split and Stock Dividend) The common stock of Alexander Hamilton Inc. is currently selling at $120 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 $10; book value is $70 per share. Nine million shares are issued and outstanding.
Prepare the necessary journal entries assuming the following.
1 The board votes a 2-for-1 stock split.
2 The board votes a 100% stock dividend
3 Briefly discuss the accounting and securities market differences between thesetwo methods of increasing the number of shares outstanding
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E15.13 (LO 3) (Stock Split and Stock Dividend) The common stock of Alexander Hamilton Inc. is curren...
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