Selected Dividend Transactions Stock Split Selected transact

Selected Dividend Transactions, Stock Split

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:

Journalize the transactions.

If no entry is required, type \"No Entry Required\" and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 8. Split the common stock 3 for 1 and reduced the par from $72 to $24 per share. After the split, there were 72,000 common shares outstanding.

Apr. 30. Declared semiannual dividends of $1.6 on 5,000 shares of preferred stock and $0.12 on the common stock payable on July 1.

July 1. Paid the cash dividends.

Oct. 31. Declared semiannual dividends of $1.6 on the preferred stock and $0.1 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $43.

Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend.

Jan. 8

Solution

Journal entries Date Account Titles Debit Credit Jan.8 No Entry Required Apr.30 Retained Earnings $16,640 Dividend Payable $16,640 July.1 Dividend Payable $16,640 Cash $16,640 Oct.31 Retained Earnings $15,200 Dividend Payable $15,200 Oct.31 Retained Earnings $30,960 Stock Dividends Distributable $30,960 Dec.31 Dividend Payable $15,200 Cash $15,200 Dec.31 Stock Dividends Distributable $30,960 Common stock $17,280 Additional Paid in Capital $13,680