Question

Entries for Selected Corporate Transactions

West Yellowstone Outfitters Corporation manufactures and distributes leisure clothing. Selected transactions completed by West Yellowstone Outfitters during the current fiscal year are as follows:

Jan. 15.	Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 800,000 common shares outstanding.
Mar. 1.	Declared semiannual dividends of $0.25 per share on 100,000 shares of preferred stock and $0.07 per share on the 800,000 shares of $30 par common stock to stockholders of record on March 31, payable on April 30.
Apr. 30.	Paid the cash dividends.
May 31.	Purchased 60,000 shares of the corporation's own common stock at $32, recording the stock at cost.
Aug. 17.	Sold 40,000 shares of treasury stock at $38, receiving cash.
Sept. 1.	Declared semiannual dividends of $0.25 per share on the preferred stock and $0.09 per share on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $40.
Oct. 31.	Paid the cash dividends and issued the certificates for the common stock dividend.

Required:

Journalize the transactions. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Jan. 15. Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 800,000 common shares outstanding.

Date	Account	Debit	Credit
Jan. 15

Mar. 1. Declared semiannual dividends of $0.25 per share on 100,000 shares of preferred stock and $0.07 per share on the 800,000 shares of $30 par common stock to stockholders of record on March 31, payable on April 30.

Date	Account	Debit	Credit
Mar. 1

Apr. 30. Paid the cash dividends.

Date	Account	Debit	Credit
Apr. 30

May 31. Purchased 60,000 shares of the corporation's own common stock at $32, recording the stock at cost.

Date	Account	Debit	Credit
May 31

Aug. 17. Sold 40,000 shares of treasury stock at $38, receiving cash.

Date	Account	Debit	Credit
Aug. 17

Sept. 1. Declared semiannual dividends of $0.25 per share on the preferred stock and $0.09 per share on the common stock (before the stock dividend).

Date	Account	Debit	Credit
Sept. 1

Sept. 1. A 1% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $40.

Date	Account	Debit	Credit
Sept. 1

Oct. 31. Paid the cash dividends.

Date	Account	Debit	Credit
Oct. 31

Oct. 31. Issued the certificates for the common stock dividend.

Date	Account	Debit	Credit
Oct. 31

Answer 1

Journal entries:

Date	Particulars	L.F	Amount	Amount
Jan-15	No entry required
Mar-01	Cash Dividend		81,000
	Cash Dividend payable			81,000
	(For dividend declared)
	100,000*.25= 25,000
	800,000*.07= 56,000
Apr-30	Cash Dividend payable		81,000
	Cash			81,000
	(for dividend paid)
May-31	Treasury Stock		1,920,000
	Cash			1,920,000
	(For treasury stock purchased)
Aug-17	Cash (40,000*38)		1,520,000
	paid in capital from sale of treasury stock			240,000
	Treasury Stock			1,280,000
	(For treasury stock sold)
Sep-01	Cash Dividend		95,200
	Cash Dividend payable			95,200
	(For dividend declared)
	100,000*.25= 25,000
	(800,000-60,000+40,000)*.09= 70,200
Sep-01	Stock Dividend		312,000
	Stock Dividend distributable			312,000
	(for stock dividend declared)
	780,000*1%*40
Oct-31	Cash Dividend payable		95,200
	Cash			95,200
	(for dividend paid)
Oct-31	Stock Dividend distibutable		312,000
	Common Stock			312,000