Selected transactions completed by Canyon Ferry Boating Corporation during the c
ID: 2395240 • Letter: S
Question
Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:
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.
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. Enter the October 31 and December 31 transactions as two separate journal entries on each date.
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JOURNAL
ACCOUNTING EQUATION
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Jan. 8 Split the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the split, there were 123,000 common shares outstanding. Apr. 30 Declared semiannual dividends of $0.80 on 16,500 shares of preferred stock and $0.27 on the common stock payable on July 1. Jul. 1 Paid the cash dividends. Oct. 31 Declared semiannual dividends of $0.80 on the preferred stock and $0.15 on the common stock (before the stock dividend). In addition, a 3% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $51. Dec. 31 Paid the cash dividends and issued the certificates for the common stock dividend.Explanation / Answer
Journal Entries Date Account Title and explanation Debit Credit Jan, 08 " No Journal Entry " Note: Only Voucher entry is done for stock split Retained Earning $ 46,410 Apr, 30 To Dividend Payable - Common Stock $ 33,210 To Dividend Payable - Preferred Stock $ 13,200 Preferred Stock Dividend = 16,500 Shares X $ 0.80 = $ 13,200 Dividend on Common Stock = 123,000 X $ 0.27 = $ 33,210 $ 46,410 Dividend Payable - Common Stock $ 33,210 July, 01 Dividend Payable - Preferred Stock $ 13,200 To Cash $ 46,410 Retained Earning $ 31,650 Oct, 31 To Dividend Payable - Common Stock $ 18,450 To Dividend Payable - Preferred Stock $ 13,200 Preferred Stock Dividend = 16,500 Shares X $ 0.80 = $ 13,200 Dividend on Common Stock = 123,000 X $ 0.15 = $ 18,450 $ 31,650 Dividend Payable - Common Stock $ 18,450 Dec, 31 Dividend Payable - Preferred Stock $ 13,200 To Cash $ 31,650 Retained Earning $ 1,88,190 Dec, 31 To Stock Dividend $ 1,88,190 Stock Dividend = 123,000 Shares X 3% = 3,690 Shares X $ 51 = $ 1,88,190 Stock Dividend $ 1,88,190 Dec, 31 To Common Stock (3,690 Shares X $ 40) $ 1,47,600 To Addittional Paid in Capital $ 40,590
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