TA Post Corporation has 35,000 shares of $1.00 stated-value common stock and 250
ID: 2601254 • Letter: T
Question
TA Post Corporation has 35,000 shares of $1.00 stated-value common stock and 250 shares of 8%, $100.00 par-value preferred stock outstanding. Instructions: Journalize each transaction completed during the current year. Page 4 of a general journal, page 6 of a cash receipts journal, and page 7 of a cash payments journal are provided in the Working Papers.Source documents are abbreviated as follows: check, C memorandum, M; receipt, R Transactions: The board of directors declared a quarterly cash dividend of $3,000.00, payable on July 31. M22. 31. Paid the July 1 dividend.C55 6. July 1. Aug. The board of directors declared a 1% stock dividend on common stock. An independent appraisal service has estimated that the common stock has a market value of $16.50 on August 6. M31 9. Purchased 300 shares of MXZ Corporation for $52.00 per share, $15,600.00.C68. 23. Paid cash to Darius Henderson for 250 shares of the corporation's common stock at $17.00 per share, $4,250.00.C79 6. Sept. Issued the August 6 stock dividend. M42. Received a $0.38 per share cash dividend from MXZ Corporation, $114.00. R69. 30. Oct. 12. Sold all of its shares of MXZ Corporation for $54.30 per share, $16,290.00. R81. 25. Received cash from Tatyanna Jamley for 150 shares of treasury stock at $19.00 per share, $2,850.00. R92.Explanation / Answer
Date Account titles Debit Credit July 1. Preference dividend (250*100*8%*3/12) 500 Cash dividend (3000-500) 2500 Dividend payable 3000 (Dividend declared) July 31. Cash dividend 3000 Cash 3000 (Dividend paid) Aug. 6 Retained earnings (35000*1%*16.50) 5775 Common stock dividend distributable (35000*1%*1) 350 Paid-in-capital in excess of par 5425 (Stock dividend declared) Aug. 9 Investment in MXZ Corporation 15600 Cash 15600 (Purchased shares of MXZ Corporation) Aug. 23 Treasury stock 4250 Cash 4250 (250 shares purchased) Sept. 6 Common stock dividend distributable 350 Common stock 350 (Stock dividend issued) Sept. 30 Cash 114 Dividend received 114 (Dividend received from MXZ Corporation) Oct. 12 Cash 16290 Investment in MXZ Corporation 15600 Gain on sale of investment 690 (Sold shares of MXZ Corporation) Oct. 25 Cash 2850 Treasury stock (150*17) 2550 Paid-in-capital from treasury stock 300 (Sold 150 shares of treasury stock)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.