CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 3

Question

CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31,20--, Choi Company completed the following transactions Apr. 15 Declared a semiannual dividend of $1.50 per share on preferred stock and $0.40 per share on common stock to shareholders of record on May 5, payable on May 10. Currently, 6,000 shares of $50 par preferred stock and 80,000 shares of $1 par common stock are outstanding Paid the cash dividends. Declared semiannual dividend of $1.50 per share on preferred stock and S0.40 per share on common stock to shareholders of record on November 5, payable on November 20 Paid the cash dividends. May 10 Oct. 15 Nov. 20 22 Declared a 10% stock dividend to common shareholders of record on December 8, distributable on December 16. Market value of the common stock was estimated at $7 per share Issued certificates for common stock dividend. Board of directors declared a two-for-one common stock split. Dec. 16 20 REQUIRED Prepare journal entries for the transactions.

Explanation / Answer

GENERAL JOURNAL

FOR THE YEAR ENDED 31,20-- OF CHOI COMPANY

DATE ACCOUNT DEBIT CREDIT APRIL 15 CASH DIVIDEND ACCOUNT DR $ 41000 PREFERED DIVIDENDS PAYABLE $ 9000 COMMON DIVIDENDS PAYABLE $ 32000 MAY 10 PREFERED DIVIDENDS PAYABLE DR $ 9000 COMMON DIVIDENDS PAYABLE DR $ 32000 TO CASH DIVIDENDS ACCOUNT $ 41000 OCT 15 CASH DIVIDEND ACCOUNT DR $41000 TO PREFERRED DIVIDEND PAYABLE $ 9000 TO COMMON DIVIDEND PAYABLE $ 32000 NOV 20 PREFERRED DIVIDEND PAYABLE DR $ 9000 COMMON STOCK PAYABLE DR $ 32000 TO CASH $ 41000 NOV 22 STOCK DIVIDEND DR $ 560000 TO STOCK DIVIDENDS DISTRIBUTABLE $ 56000 TO COMMON STOCK $ 504000 DEC 16 STOCK DIVIDENDS DISTRIBUTABLE DR $ 56000 TO COMMON STOCK $ 56000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.