Question

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

Jan.	8	Split the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the split, there were 123,000 common shares outstanding.
Apr.	30	Declared semiannual dividends of $0.80 on 16,500 shares of preferred stock and $0.27 on the common stock payable on July 1.
Jul.	1	Paid the cash dividends.
Oct.	31	Declared semiannual dividends of $0.80 on the preferred stock and $0.15 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 $51.
Dec.	31	Paid the cash dividends and issued the certificates for the common stock dividend.

Journalize the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

Journalize the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Enter the October 31 and December 31 transactions as two separate journal entries on each date.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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Answer 1

Journal Entries
Date	Account Title and explanation	Debit	Credit
Jan, 08	" No Journal Entry "
	Note: Only Voucher entry is done for stock split
	Retained Earning	$               46,410
Apr, 30	To Dividend Payable - Common Stock		$                33,210
	To Dividend Payable - Preferred Stock		$                13,200
	Preferred Stock Dividend = 16,500 Shares X $ 0.80 =	$               13,200
	Dividend on Common Stock = 123,000 X $ 0.27 =	$               33,210
		$               46,410
	Dividend Payable - Common Stock	$               33,210
July, 01	Dividend Payable - Preferred Stock	$               13,200
	To Cash		$                46,410
	Retained Earning	$               31,650
Oct, 31	To Dividend Payable - Common Stock		$                18,450
	To Dividend Payable - Preferred Stock		$                13,200
	Preferred Stock Dividend = 16,500 Shares X $ 0.80 =	$               13,200
	Dividend on Common Stock = 123,000 X $ 0.15 =	$               18,450
		$               31,650
	Dividend Payable - Common Stock	$               18,450
Dec, 31	Dividend Payable - Preferred Stock	$               13,200
	To Cash		$                31,650
	Retained Earning	$           1,88,190
Dec, 31	To Stock Dividend		$            1,88,190
	Stock Dividend = 123,000 Shares X 3% = 3,690 Shares X $ 51 =	$           1,88,190
	Stock Dividend	$           1,88,190
Dec, 31	To Common Stock (3,690 Shares X $ 40)		$            1,47,600
	To Addittional Paid in Capital		$                40,590