1. Boehm Rest Company has 30,000 shares of its $1 par value common stock outstan

Question

1.            Boehm Rest Company has 30,000 shares of its $1 par value common stock outstanding. Record in journal form the following transactions as they relate to the company%u2019s common stock:

July 17     Declared a 10 percent stock dividend on common stock to be distributed

                  on August 10 to stockholders of record on July 31. Market value of the

                  stock was $5 per share on this date.

Aug. 10    Distributed the stock dividend declared on July 17

Sept. 1      Declared a $0.50 per share cash dividend on common stock to be paid on

                  September 16 to stockholders of record on September 10.

Explanation / Answer

Journal Debit Credit 17-Jul Dividend 3000 dividend payable 3000 10-Aug dividend payable 3000 bank 3000 1-Sep dividend 15000 dividend payable 15000 16-Sep dividend payable 15000 bank 15000

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