In: Accounting
Jan. |
5. |
JOURNALIZE THE ENTRIES. Split the common stock 4 for 1 and reduced the par from $20 to $5 per share. After the split, there were 4,000,000 common shares outstanding. |
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Mar. | 10. | Purchased 100,000 shares of the corporation’s own common stock at $30, recording the stock at cost. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Apr. | 30. | Declared semiannual dividends of $0.25 on 30,000 shares of preferred stock and $0.08 on the common stock to stockholders of record on May 15, payable on June 15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June | 15. | Paid the cash dividends. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aug. | 20. | Sold 60,000 shares of treasury stock at $40, receiving cash. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oct. | 15. | Declared semiannual dividends of $0.25 on the preferred stock and $0.08 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $35. The dividend date of record is November 15 payable on December 19. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. | 19. |
Paid the cash dividends and issued the certificates for the common stock dividend.
Journalize the entries |
Journal Entries :-
Date | Particulars | Debit($) | Credit($) |
Jan. 5 | Comman Stock @ $20 a/c Dr. | 80000000 | |
To Common Stock @ $5 a/c | 80000000 | ||
Mar. 10 | Trasury Stock A/c Dr. | 3000000 | |
To Cash A/c (100000*$30) | 3000000 | ||
April 30 | Common Dividend Declared a/c Dr ((4000000-100000)*$0.08) | 312000 | |
Preferred Dividend Declared a/c Dr. (30000*$0.25) | 7500 | ||
To Common Dividend Payable A/c | 312000 | ||
To Preferred Dividend Payable A/c | 7500 | ||
Jun 15 | Common Dividend Payable A/c Dr. | 312000 | |
Preferred Dividend Payable a/c Dr. | 7500 | ||
To Cash A/c | 328500 | ||
Aug. 20 | Cash A/c Dr. (60000*$40) | 2400000 | |
To Treasury Stock A/c ($2400000*(60000/100000)) | 1440000 | ||
To additional Paid in Capital A/c | 960000 | ||
Oct 15 |
Common Dividend Declared A/c Dr. (4000000-100000+60000)*$0.08 |
316800 | |
Preferred Dividend Declared A/c Dr. (30000*$0.25) | 7500 | ||
To Common Dividend Payable a/c | 316800 | ||
To Preferrd Dividend Payable A/c | 7500 | ||
Oct 15 | Retained Earnings A/c Dr.(3960000*$35*1%) | 1386000 | |
To Common Stock Dividend Distributable A/c(3960000*$5*1%) | 198000 | ||
To Paid in Capital in Excess of Par A/c(3960000*$30*1%) | 1188000 | ||
Dec 19 | Common Dividend Payable a/c Dr. | 316800 | |
Preferred Dividend Payable a/c Dr. | 7500 | ||
To Cash A/c | 324300 | ||
Dec. 19 | Common Stock Dividend Distributable A/c Dr. | 1386000 | |
To Common Stock A/c | 1386000 |