1. Entries for Selected Corporate Transactions West Yellowstone Outfitters Corpo
ID: 2408998 • Letter: 1
Question
1. Entries for Selected Corporate Transactions 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. Sept. 1. Dedlared 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. Required: Journalize the transactions. If no entry is required, select "No entry required from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank Jan. 15. Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 800,000 common shares outstanding.Explanation / Answer
Required journal entries are as prepared below:
Date Particulars L.F Amount ($) Amount ($) Jan-15 No entry required No entry required Mar-01 Cash Dividend 81,000 Cash Dividend payable 81,000 (For dividend declared) 100,000*.25= 25,000 800,000*.07= 56,000 Apr-30 Cash Dividend payable 81,000 Cash 81,000 (for dividend paid) May-31 Treasury Stock 1,920,000 Cash 1,920,000 (For treasury stock purchased) Aug-17 Cash (40,000*38) 1,520,000 paid in capital from sale of treasury stock 240,000 Treasury Stock 1,280,000 (For treasury stock sold) Sep-01 Cash Dividend 95,200 Cash Dividend payable 95,200 (For dividend declared) 100,000*.25= 25,000 (800,000-60,000+40,000)*.09= 70,200 Sep-01 Stock Dividend 312,000 Stock Dividend distributable 312,000 (for stock dividend declared) 780,000*1%*40 Oct-31 Cash Dividend payable 95,200 Cash 95,200 (for dividend paid) Oct-31 Stock Dividend distibutable 312,000 Common Stock 312,000Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.