Selected transactions completed by Canyon Ferry Boating Corporation during the c
ID: 2426712 • Letter: S
Question
Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:
The stock outstanding when a corporation has issued only one class of stock.
The monetary amount printed on a stock certificate.
A class of stock with preferential rights over common stock.
A cash distribution of earnings by a corporation to its shareholders.
A distribution of shares of stock to a corporation’s stockholders.
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.
Income Summary
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.
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Jan. 8 Split the common stockThe stock outstanding when a corporation has issued only one class of stock.
2 for 1 and reduced the parThe monetary amount printed on a stock certificate.
from $80 to $40 per share. After the split, there were 171,000 common shares outstanding. Apr. 30 Declared semiannual dividends of $0.70 on 16,000 shares of preferred stockA class of stock with preferential rights over common stock.
and $0.21 on the common stock payable on July 1. Jul. 1 Paid the cash dividendsA cash distribution of earnings by a corporation to its shareholders.
. Oct. 31 Declared semiannual dividends of $0.70 on the preferred stock and $0.16 on the common stock (before the stock dividendA distribution of shares of stock to a corporation’s stockholders.
). 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 $54. Dec. 31 Paid the cash dividends and issued the certificates for the common stock dividend.Explanation / Answer
Date
Description
Debit
Credit
Jan.08
Common stock at $80
68,40,000
Common stock at $40
68,40,000
(To record the stock split)
Apr.30
Retained earnings
11,200
Preference dividend payable
11,200
(To record the dividend declaration)
Jul.1
Preference dividend payable
11,200
Cash
11,200
(To record the dividend payable)
Oct.31
Retained earnings
11,05,600
Preference dividend payable
11,200
Common dividend payable
10,94,400
(To record the dividend payable)
Oct.31
Retained earnings
1,84,680
Stock dividend distributable
1,84,680
(To record the dividend payable)
Dec.31
Preference dividend payable
11,200
Common dividend payable
10,94,400
Cash
11,05,600
(To record the payment)
Dec.31
Stock dividend payable
1,84,680
Common stock
1,84,680
(To record the issue of stock dividend)
Date
Description
Debit
Credit
Jan.08
Common stock at $80
68,40,000
Common stock at $40
68,40,000
(To record the stock split)
Apr.30
Retained earnings
11,200
Preference dividend payable
11,200
(To record the dividend declaration)
Jul.1
Preference dividend payable
11,200
Cash
11,200
(To record the dividend payable)
Oct.31
Retained earnings
11,05,600
Preference dividend payable
11,200
Common dividend payable
10,94,400
(To record the dividend payable)
Oct.31
Retained earnings
1,84,680
Stock dividend distributable
1,84,680
(To record the dividend payable)
Dec.31
Preference dividend payable
11,200
Common dividend payable
10,94,400
Cash
11,05,600
(To record the payment)
Dec.31
Stock dividend payable
1,84,680
Common stock
1,84,680
(To record the issue of stock dividend)
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