Question

Selected transactions completed by Breezeway Construction during the current fiscal year are as follows:

Feb.	3	Split the common stock 2-for-1 and reduced the par from $40 to $20 per share. After the split, there were 250,000 common shares outstanding.
Apr.	10	Declared semiannual dividends of $1.50 on 18,000 shares of preferred stock and $0.08 on the common stock to stockholders of record on May 10, payable on June 9.
June	9	Paid the cash dividends.
Oct.	10	Declared semiannual dividends of $1.50 on the preferred stock and $0.04 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36.
Dec.	9	Paid the cash dividends and issued the certificates for the common stock dividend.

Required:

Journalize these 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 each of 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. PAGE 1 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 Solution DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 Feedback Explanation

Answer 1

Date	account titles & Explanations					Debit	Credit
3-Feb	No Entry
10-Apr	Cash Dividend-common stock			(250000*0.08)		20000
	Cash dividend -preferred stock			(1.5*18000)		27000
	Dividends payable						47000
9-Jun	Dividends payable					47,000
	cash						47,000
10-Oct	Cash Dividend-common stock			(250,000*0.04)		10000
	Cash dividend -preferred stock			(1.5*18000)		27000
	Dividends payable						37000
10-Oct	Stock dividends		(5000*36)			180000
	Stock dividends distributable			(5000*20)			100000
	paid in capital in excess of par-common stock						80000
	( shares 250,000*2%=5000 shares)
9-Dec	Dividends payable					37,000
	cash						37,000
	Stock dividend distributable					100,000
	common Stock						100,000