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I cant figure out how to journalize the transaction of: How to answer this quest

ID: 2502299 • Letter: I

Question

I cant figure out how to journalize the transaction of:



How to answer this question is giving me a hard time, How do I know how much commom stock outstanding there is?


Oct. 1.  A 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36.


Jan, 9. Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,200,000 common shares outstanding. Feb. 28. Purchased 40,000 shares of the corporation's own common stock at $28, recording the stock at cost. May 1. Declared semiannual dividends of $0. 80 on 75,000 shares of preferred stock and $0. 12 on the common stock to stockholders of record on June 1, payable on July 10. July 10. Paid the cash dividends. Sept. 7. Sold 30,000 shares of treasury' stock at $34, receiving cash. Oct. 1. Declared semiannual dividends of $0. 80 on the preferred stock and $0. 12 on the common stock (before the stock dividend). 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 $36. Dec. 1. Paid the cash dividends and issued the certificates for the common stock dividend.

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