Question

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 on 100,000 shares of preferred stock and $0.07 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.
Sep.	1	Declared semiannual dividends of $0.25 on the preferred stock and $0.09 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.

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.

Answer 1

Date	General Journal	Debit	Credit
Jan, 15	"No Journal Entry for stck split" only memo entry
	Because there is no changes in total value of the common stock
	Retained Earning	$81,000
Mar , 01	To Dividend Payable		$81,000
	(To Record the dividend payable)
	Preferred Stock = 100,000 X $ 0.25 =	$25,000
	Common Stock = 800,000 Shares X $ 0,07 =	$56,000
		$81,000
Apr, 30	Dividend Payable	$81,000
	To Cash		$81,000
May , 31	Treasurry Stock (60,000 Shares X $ 32)	$1,920,000
	To Cash		$1,920,000
Aug, 17	Cash (40,000 Shares X $ 38)	$1,520,000
	To Treasurry Stock		$1,280,000
	To Addittional Paid in Capital - Treasurry Stock		$240,000
	Retained Earning	$97,000
Sept , 01	To Dividend Payable		$97,000
	(To Record the dividend payable)
	Preferred Stock = 100,000 X $ 0.25 =	$25,000
	Common Stock = 800,000 Shares X $ 0,09 =	$72,000
		$97,000
Sept , 01	Retained Earning	$320,000
	To Stock Dividend Payable
	Stock Dividend = 800,000 Shares X 1% = 8,000 Shares X $ 40 =	$320,000
Oct, 31	Dividend Payable	$97,000
	To Cash		$97,000
Oct, 31	Stock Dividend Payable	$320,000
	To Common Stock (8,000 Shares X $ 30)		$240,000
	To Addittional paid in capital - Common stock		$80,000