Selected transactions completed by ATV Discount Corporation during the current f
ID: 2564744 • Letter: S
Question
Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows:
Jan.
5.
Split the common stock
The stock outstanding when a corporation has issued only one class of stock.
3 for 1 and reduced the par
A dollar amount assigned to each share of stock.
from $75 to $25 per share. After the split, there were 1,051,500 common shares outstanding.
Mar.
10.
Purchased 41,200 shares of the corporation’s own common stock at $27, recording the stock
Shares of ownership of a corporation.
at cost.
Apr.
30.
Declared semiannual dividends
Distribution of a corporation’s earnings to stockholders.
of $0.90 on 71,600 shares of preferred stock
A class of stock with preferential rights over common stock.
and $0.13 on the common stock to stockholders
The owners of a corporation.
of record on May 15, payable on June 15.
June
15.
Paid the cash dividends
A cash distribution of earnings by a corporation to its shareholders.
.
Aug.
20.
Sold 28,500 shares of treasury stock
Stock that a corporation has once issued and then reacquires.
at $34, receiving cash.
Oct.
15
Declared semiannual dividends of $0.90 on the preferred stock and $0.13 on the common stock (before the stock dividend). In addition, a 3% common stock dividend
A distribution of shares of stock to its stockholders.
was declared on the common stock outstanding. The fair market value of the common stock is estimated at $38. The dividend date of record is November 15 payable on December 19.
Dec.
19.
Paid the cash dividends and issued the certificates for the common stock dividend.
CHART OF ACCOUNTS
ATV Discount Corporation
General Ledger
ASSETS
110
Cash
120
Accounts Receivable
131
Notes Receivable
132
Interest Receivable
141
Merchandise Inventory
145
Office Supplies
151
Prepaid Insurance
181
Land
193
Equipment
194
Accumulated Depreciation-Equipment
LIABILITIES
210
Accounts Payable
221
Notes Payable
226
Interest Payable
231
Cash Dividends Payable
241
Salaries Payable
261
Mortgage Note Payable
EQUITY
311
Common Stock
312
Paid-In Capital in Excess of Par-Common Stock
315
Treasury Stock
321
Preferred Stock
322
Paid-In Capital in Excess of Par-Preferred Stock
331
Paid-In Capital from Sale of Treasury Stock
340
Retained Earnings
350
Stock Dividends Distributable
351
Cash Dividends
352
Stock Dividends
390
Income Summary
REVENUE
410
Sales
610
Interest Revenue
EXPENSES
510
Cost of Merchandise Sold
515
Credit Card Expense
520
Salaries Expense
531
Advertising Expense
532
Delivery Expense
533
Selling Expenses
534
Rent Expense
535
Insurance Expense
536
Office Supplies Expense
537
Organizational Expenses
562
Depreciation Expense-Equipment
590
Miscellaneous Expense
710
Inte
Jan.
5.
Split the common stock
The stock outstanding when a corporation has issued only one class of stock.
3 for 1 and reduced the par
A dollar amount assigned to each share of stock.
from $75 to $25 per share. After the split, there were 1,051,500 common shares outstanding.
Mar.
10.
Purchased 41,200 shares of the corporation’s own common stock at $27, recording the stock
Shares of ownership of a corporation.
at cost.
Apr.
30.
Declared semiannual dividends
Distribution of a corporation’s earnings to stockholders.
of $0.90 on 71,600 shares of preferred stock
A class of stock with preferential rights over common stock.
and $0.13 on the common stock to stockholders
The owners of a corporation.
of record on May 15, payable on June 15.
June
15.
Paid the cash dividends
A cash distribution of earnings by a corporation to its shareholders.
.
Aug.
20.
Sold 28,500 shares of treasury stock
Stock that a corporation has once issued and then reacquires.
at $34, receiving cash.
Oct.
15
Declared semiannual dividends of $0.90 on the preferred stock and $0.13 on the common stock (before the stock dividend). In addition, a 3% common stock dividend
A distribution of shares of stock to its stockholders.
was declared on the common stock outstanding. The fair market value of the common stock is estimated at $38. The dividend date of record is November 15 payable on December 19.
Dec.
19.
Paid the cash dividends and issued the certificates for the common stock dividend.
Explanation / Answer
If any doubt please comment
Date Accounts Title Dr Cr 5-Jan Memo entry required. No journal entry required 10-Mar Treasury Stock 1112400 Cash 1112400 (41200*27) 30-Apr Cash Dividend 201135 Cash Dividend Payable 201135 (71600*.9)+(.13*1051500) 15-May No entry required 15-Jun Cash Dividend Payable 201135 Cash 201135 20-Aug Cash (28500*34) 969000 Treasury Stock 769500 Paid-In Capital from Sale of Treasury Stock 199500 15-Oct Cash Dividend 201135 Cash Dividend Payable 201135 (71600*.9)+(.13*1051500) 15-Oct Stock Dividend (1051500*38*3%) 1198710 Stock Dividends Distributable (1051500*25*3%) 788625 Paid-In Capital in Excess of Par-Common Stock 410085 19-Dec Cash Dividend Payable 201135 Cash 201135 Stock Dividends Distributable (1051500*25*3%) 788625 Common stock 788625 31-Dec Retained Eraning 1600980 Cash Dividend 402270 Stock Dividend (1051500*38*3%) 1198710Related Questions
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