*is not 1,000,000 and 100,000 Prepare entries to record the following selected t
ID: 2578471 • Letter: #
Question
*is not 1,000,000 and 100,000
Prepare entries to record the following selected transactions completed during the current fiscal year: Jan. 1 The board of directors declared a stock split which reduced the par of common shares from S100 to $20. This action increased the number of outstanding shares to 500,000. Purchased 25,000 shares of own stock at $44, recording the treasury stock at cost Declared a dividend of $2 per share on the outstanding shares of common stock Paid the dividend declared on March 1 Declared a 1% stock dividend on common stock outstanding (the fair market value of 10 March 1 15 July 1 the stock to be issued is $50). July 15 Issued the certificates for the common stock dividend declared Description Debit Credit 1/1 No Entry Required No Entry Required 1/10 Treasury Stock Cash 1100000 1100000 3/1 Cash Dividend Cash Dividend Payable 3/15 Cash Dividend Pavable Cash 7/1 Stock Dividend Stock Dividends Distributable 7/15 Stock Dividends Distributable Common StockExplanation / Answer
ANSWER:
Jan. 1 No entry required
Jan 10 Dr. Treasury Stock 1,100,000
Cr. Cash 1,100,000
March 1 Dr. Cash Dividends $950,000
Cr. Cash Dividends Payable $950,000
(500000-25000) *2
March 15 Dr. Cash Dividends Payable $950,000
Cr. Cash $950,000
July 1 Dr. Stock Dividends $237,500
Cr. Stock Dividends Distributable $95000
Cr. Paid-In Capital in Excess of Par-Common Stock $142,500
(475000*1%= 4750; 4750*$50 = 237500;4750*20 = 95000)
July 15 Dr. Stock Dividends Distributable $95000
Cr. Common Stock $95000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.