Question

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:

Journalize the transactions.

If no entry is required, type "No Entry Required" and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 8. Split the common stock 3 for 1 and reduced the par from $48 to $16 per share. After the split, there were 135,000 common shares outstanding.

Jan. 8

Apr. 30. Declared semiannual dividends of $1.4 on 9,000 shares of preferred stock and $0.14 on the common stock payable on July 1.

Apr. 30

July 1. Paid the cash dividends.

July 1

Oct. 31. Declared semiannual dividends of $1.4 on the preferred stock and $0.11 on the common stock (before the stock dividend). In addition, a 3% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $29.

Cash Dividends
Stock dividends

Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend.

Payment
Issuance

Answer 1

Journal entry :

Date	account and explanation	debit	credit
Jan 8	Common Stock (OLD)	2160000
	Common Stock (NEW)		2160000
Apr 30	Common Dividend (135000*.14)	18900
	Preferred dividend (9000*1.4)	12600
	Dividend payable		31500
	(To record dividend declared)
July 1	Dividend payable	31500
	Cash		31500
	(To dividend paid)
Oct 31	Common Cash Dividend (135000*.11)	14850
	Preferred Cash dividend	12600
	Dividend payable		27450
	(To record dividend declared)
	Stock dividend (135000*3%*29)	117450
	Common Stock dividend distributable		64800
	Paid in capital in excess of par value		52650
	(To record dividend declared)
Dec 31	Dividend payable	27450
	Cash		27450
	(To record dividend paid)
	Common Stock dividend distributable	64800
	Common Stock		64800
	(TO record dividend issuance)