of Journal Instructions Selected transactions completed by Canyon Feny Boating C
ID: 2606117 • Letter: O
Question
of Journal Instructions Selected transactions completed by Canyon Feny Boating Corporation during the current fiscal year are as follows Jan. 8 Splt the common stock 2 for 1 and reduced the par from $70 to $35 per share. After the spit, there Apr. 30 Declared semiannual dividends of $0.80 on 18,500 shares of preterred stock and S0.22 on the common Jul. 1 Paid the cash dividends were 131,000 common shares outstanding stock payable on July 1. Declared semiannual dividends of $0.80 on the preferred stock and S0.13 on the common stock (before the stock dmdend). In addition, a 4% common stock dividend was dedared on the common stock outstanding The fair market value of the common stock is estimated at $50 Paid the cash dividends and issued the certificates for the common stock dividend Oct 31 Dec. 31 Journalize the transactions. If no entry is required, simply skip to the next transaction. Reter to the Chart of Accounts for exact wording of account titles Check My Work k5 more Check My Work uses remainingExplanation / Answer
Answer:
Journal entry in the books of Canyon Ferry Boating Corporation is as under
Date
Desription
Debit $
Credit $
8-Jan
No journal entry required for stock split
30-Apr
Devidend Expanses
(18500*0.80+0.22*131000)
43,620
Dividends Payable - Preferred Stock
(18500*0.80)
14,800
Dividends Payable - Common Stock
(0.22*131000)
28,820
(To record the issue of devidend)
1-Jul
Dividends Payable - Preferred Stock
14,800
Dividends Payable - Common Stock
28,820
Cash
43,620
(To record the Payment of devidend)
31-Oct
Devidend Expanses
(18500*0.80+0.13*131000)
31,830
Dividends Payable - Preferred Stock
(18500*0.80)
14,800
Dividends Payable - Common Stock
(0.13*131000)
17,030
(To record the issue of devidend)
Retained Earnings
(131,000 x 4% x 50)
262,000
Common Stock Dividend Distributable
(131,000 x 4% x 35)
183,400
Paid-in Capital in Excess of Par - Common Stock ( 131,000 x 4% x15)
78,600
31-Dec
Dividends Payable - Preferred Stock
14,800
Dividends Payable - Common Stock
17,030
Cash
31,830
Common Stock Dividend Distributable
183,400
Common Stock
183,400
Date
Desription
Debit $
Credit $
8-Jan
No journal entry required for stock split
30-Apr
Devidend Expanses
(18500*0.80+0.22*131000)
43,620
Dividends Payable - Preferred Stock
(18500*0.80)
14,800
Dividends Payable - Common Stock
(0.22*131000)
28,820
(To record the issue of devidend)
1-Jul
Dividends Payable - Preferred Stock
14,800
Dividends Payable - Common Stock
28,820
Cash
43,620
(To record the Payment of devidend)
31-Oct
Devidend Expanses
(18500*0.80+0.13*131000)
31,830
Dividends Payable - Preferred Stock
(18500*0.80)
14,800
Dividends Payable - Common Stock
(0.13*131000)
17,030
(To record the issue of devidend)
Retained Earnings
(131,000 x 4% x 50)
262,000
Common Stock Dividend Distributable
(131,000 x 4% x 35)
183,400
Paid-in Capital in Excess of Par - Common Stock ( 131,000 x 4% x15)
78,600
31-Dec
Dividends Payable - Preferred Stock
14,800
Dividends Payable - Common Stock
17,030
Cash
31,830
Common Stock Dividend Distributable
183,400
Common Stock
183,400
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