Selected transactions completed by Big Water Boating Corporation during the curr
ID: 2369851 • Letter: S
Question
Selected transactions completed by Big Water Boating Corporation during the current fiscal year are as follows:
Paid the cash dividends and issued the certificates for the common stock dividend.
Journalize the transactions. If no entry is required, select "No Entry Required." For a compound transaction, if an amount box does not require an entry, leave it blank.
Jan. 3. Split the common stock 3 for 1 and reduced the par from $30 to $10 per share. After the split, there were 390,000 common shares outstanding. Apr. 7. Purchased 31,000 shares of the corporation's own common stock at $16, recording the stock at cost. May 1. Declared semiannual dividends of $2.00 on 40,000 shares of preferred stock and $0.12 on the common stock to stockholders of record on May 15, payable on June 1. June 1. Paid the cash dividends. July 29. Sold 22,000 shares of treasury stock at $19, receiving cash. Nov. 15. Declared semiannual dividends of $2.00 on the preferred stock and $0.18 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 $21.Paid the cash dividends and issued the certificates for the common stock dividend.
Journalize the transactions. If no entry is required, select "No Entry Required." For a compound transaction, if an amount box does not require an entry, leave it blank.
Explanation / Answer
Similar solution just replaces values if any query then asks
Selected transactions completed by Keamy Boating Corporation during the current fiscal year are as follows:
Jan. 8. Split the common stock 3 for 1 and reduced the par from $75 to $25 per shrae. After the split, there were 600,000 common shares outstanding.
Feb. 13. Purchased 30,000 shares of the corporation's own common stock at $27, recording the stock at cost.
May 1. Declared semiannual dividends of $0.80 on 25,000 shares of preferred stock and $0.18 on the common stock to stockholders of record on May 15, payable on June 1.
June 1. Paid the cash dividends.
Aug. 5. Sold 22,000 shares of treasury stock at $34, receiving cash.
Nov 15-part 1: Declared semiannual dividends of $0.80 on the preferred stock and $0.20 on the common stock (before the stock dividend)
Nov 15-part 2: 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 $40
Dec 31-part1: Paid the cash dividends from Nov 15.
Dec 31-part2: Issued the certificates for the common stock dividend from Nov 15.
ans
Jan. 8. Split the common stock 3 for 1 and reduced the par from $75 to $25 per shrae. After the split, there were 600,000 common shares outstanding.
For stock splits, no formal journal entries are neccessary. You could make a notation that the par value has been reduced and that there are now 600,000 of common stock outstanding.
Feb. 13. Purchased 30,000 shares of the corporation's own common stock at $27, recording the stock at cost.
Dr Common Treasury Stock 810,000 (30,000 x 27)
Cr Cash 810,000
May 1. Declared semiannual dividends of $0.80 on 25,000 shares of preferred stock and $0.18 on the common stock to stockholders of record on May 15, payable on June 1.
Dr Cash Dividends 122,600 [(25,000 x 0.80) + (570,000 x 0.18)]
Cr Preferred Dividends Payable 20,000
Cr Common Dividends Payable 102,600
June 1. Paid the cash dividends.
Dr Preferred Dividends Payable 20,000
Dr Common Dividends Payable 102,600
Cr Cash 122,600
Aug. 5. Sold 22,000 shares of treasury stock at $34, receiving cash.
Dr Cash 748,000
Cr Common Treasury Stock 594,000 (27 x 22,000)
Cr Paid-In Capital from Sale of Treasury Stock 154,000 (748,000 - 594,000)
Nov 15-part 1: Declared semiannual dividends of $0.80 on the preferred stock and $0.20 on the common stock (before the stock dividend)
Dr Cash Dividends 138,400 [(25,000 x 0.80) + (592,000 x 0.20)]
Cr Preferred Dividends Payable 20,000
Cr Common Dividends Payable 118,400
Nov 15-part 2: 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 $40
Dr Stock Dividends 473,600
Cr Stock Dividends Distributable 296,000 (592,000 x 2% x 25par value)
Cr Paid-In Capital in Excess of Par, Common Stock 177,600 (592,000 x 2% x 15over par)
Dec 31-part1: Paid the cash dividends from Nov 15.
Dr Preferred Dividends Payable 20,000
Dr Common Dividends Payable 118,400
Cr Cash 138,400
Dec 31-part2: Issued the certificates for the common stock dividend from Nov 15.
Dr Stock Dividends Distributable 296,000
Cr Common Stock 296,000
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