Selected transactions completed by Hartwell Boating Supply Corporation during th
ID: 2366667 • Letter: S
Question
Selected transactions completed by Hartwell Boating Supply 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 or enter zero ("0"). Feb. 10. Split the common stock 2 for 1 and reduced the par from $56 to $28 per share. After the split, there were 96,000 common shares outstanding. May 1. Declared semiannual dividends of $1.40 on 7,000 shares of preferred stock and $0.16 on the common stock payable on June 15. June 15. Paid the cash dividends. Nov. 1. Declared semiannual dividends of $1.40 on the preferred stock and $0.13 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 $50. Dec. 15. Paid the cash dividends and issued the certificates for the common stock dividend.Explanation / Answer
Feb. 10. Split the common stock 3 for 1 and reduced the par from $60 to $20 per share. After the split, there were 300,000 common shares outstanding.
Stock splitsneed no journal entries.
May 1. Declared semiannual dividends of $2.00 on 40,000 shares ofpreferred stockand $0.12 on the common stock payable on June 15.
Dr Retained Earnings 116,000
CrCash Dividends Payable 116,000
June 15. Paid the cash dividends
Dr Cash Dividends Payable 116,000
Cr Cash 116,000
Nov. 1. Declared semiannual dividends of $2.00 on the preferred stock and $0.08 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 $28.
Dr Retained Earnings 104,000
Cr Cash Dividends 104,000
Dr Retained Earnings 168,000 (300,000 x 28 x 2%)
Cr Stock Dividends Distributable 120,000 (300,000 x 20 x 2%)
Cr Paid-In Capital in Excess of Par, Common Stock 48,000
Dec. 15. Paid the cash dividends and issued the certificates for the common stock dividend
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