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w/ .: CengageNowa l OnlirC Exercise 13-18 Cash Dix | Drive-Google Drive × Cengage om/ilm/takeAssignment/takeAssignmentMaindo?invoker-assignments&takeAssignmentSessionLoc; Print Item Calculator Entries for Selected Corporate Transactions Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows: Instructions: Journalize the transactions. If no entry is required, select "No Entry Required" from the dropdown box and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 5. Split the common stock 3 for 1 and reduced the par from $105 to $35 per share. After the split, there were 435,000 common shares outstanding. Date Account Debit Credit Jan. 5. Mar. 10. Purchased 35,000 shares of the corporation's own common stock at $38, recording the stock at cost. Date Account Debit Credit Mar. 10 Check My Work 2 more Check My Work uses remaining Previous NextExplanation / Answer
Answer
Date
Dr. $
Cr. $
5-Jan
No Entry
10-Mar
Treasury Stock (35,000 Shares * $38)
1,330,000
Cash
1,330,000
30-Apr
Dividend
268,000
Dividend Payable
268,000
15-Jun
Dividend Payable
268,000
Cash
268,000
20-Aug
Cash (25,000 * $42)
1,050,000
Treasury Stock (25,000 * $38)
950,000
Additional Paid-in-capital - Treasury Stock [25,000 * $4(42-38)]
100,000
15-Oct
Dividend
297,750
Dividend Payable
297,750
15-Oct
Retained Earnings (8500 * $44)
374,000
Common Stock dividend distributable (8500 * $35)
297,500
Additional paid-in-capital - Common Stock
76,500
19-Dec
Dividend Payable
297,750
Cash
297,750
31-Dec
Common Stock dividend distributable (8500 * $35)
297,500
Common Stock dividend distributable (8500 * $35)
297,500
Note 1
There will be no entry for split and change in par value, as it changes only share value and no. of shares, The Total Equity capital will be same, so there will be no entry.
Note 2
Common Stock on May 15 for April 30 dividend
= 435,000 – 35,000 (Treasury Stock)
Common Stock on May 15 for April 30 dividend = 400,000 Shares
Dividend = Preference Dividend + Common Stock dividend
= (50,000 Shares * $4) + (400,000 Shares * $0.17)
Dividend = $268,000
Note 3
Common Stock on Oct 15 dividend
= 435,000 – 35,000 (Treasury Stock) + 25,000 (Treasury Stock issued)
Common Stock on May 15 for April 30 dividend = 425,000 Shares
Dividend = Preference Dividend + Common Stock dividend
= (50,000 Shares * $4) + (425,000 Shares * $0.23)
Dividend = $297,750
Note 4
Common Stock dividend = 2% * 425,000 Shares
= 8,500 Shares
Date
Dr. $
Cr. $
5-Jan
No Entry
10-Mar
Treasury Stock (35,000 Shares * $38)
1,330,000
Cash
1,330,000
30-Apr
Dividend
268,000
Dividend Payable
268,000
15-Jun
Dividend Payable
268,000
Cash
268,000
20-Aug
Cash (25,000 * $42)
1,050,000
Treasury Stock (25,000 * $38)
950,000
Additional Paid-in-capital - Treasury Stock [25,000 * $4(42-38)]
100,000
15-Oct
Dividend
297,750
Dividend Payable
297,750
15-Oct
Retained Earnings (8500 * $44)
374,000
Common Stock dividend distributable (8500 * $35)
297,500
Additional paid-in-capital - Common Stock
76,500
19-Dec
Dividend Payable
297,750
Cash
297,750
31-Dec
Common Stock dividend distributable (8500 * $35)
297,500
Common Stock dividend distributable (8500 * $35)
297,500
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