Jan 5 JOURNALIZE THE ENTRIES Split the common stock 4 for 1

Jan.

JOURNALIZE THE ENTRIES.

Split the common stock 4 for 1 and reduced the par from $20 to $5 per share. After the split, there were 4,000,000 common shares outstanding.

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

Journalize the entries

Jan.

JOURNALIZE THE ENTRIES.

Split the common stock 4 for 1 and reduced the par from $20 to $5 per share. After the split, there were 4,000,000 common shares outstanding.

Mar.

10.

Purchased 100,000 shares of the corporation’s own common stock at $30, recording the stock at cost.

Apr.

30.

Declared semiannual dividends of $0.25 on 30,000 shares of preferred stock and $0.08 on the common stock to stockholders of record on May 15, payable on June 15.

June

15.

Paid the cash dividends.

Aug.

20.

Sold 60,000 shares of treasury stock at $40, receiving cash.

Oct.

15.

Declared semiannual dividends of $0.25 on the preferred stock and $0.08 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 $35. The dividend date of record is November 15 payable on December 19.

Dec.

19.

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

CHART OF ACCOUNTS

ATV Discount Corporation

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
151	Prepaid Insurance
181	Land
193	Equipment
194	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
241	Salaries Payable
261	Mortgage Note Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
315	Treasury Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
350	Stock Dividends Distributable
351	Cash Dividends
352	Stock Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Selling Expenses
534	Rent Expense
535	Insurance Expense
536	Office Supplies Expense
537	Organizational Expenses
562	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest Expense

Journalize the entries

Journal Entries :-

Common Dividend Declared A/c Dr. (4000000-100000+60000)*$0.08

Date	Particulars	Debit($)	Credit($)
Jan. 5	Comman Stock @ $20 a/c Dr.	80000000
	To Common Stock @ $5 a/c		80000000

Mar. 10	Trasury Stock A/c Dr.	3000000
	To Cash A/c (100000*$30)		3000000

April 30	Common Dividend Declared a/c Dr ((4000000-100000)*$0.08)	312000
	Preferred Dividend Declared a/c Dr. (30000*$0.25)	7500
	To Common Dividend Payable A/c		312000
	To Preferred Dividend Payable A/c		7500

Jun 15	Common Dividend Payable A/c Dr.	312000
	Preferred Dividend Payable a/c Dr.	7500
	To Cash A/c		328500

Aug. 20	Cash A/c Dr. (60000*$40)	2400000
	To Treasury Stock A/c ($2400000*(60000/100000))		1440000
	To additional Paid in Capital A/c		960000

Oct 15	Common Dividend Declared A/c Dr. (4000000-100000+60000)*$0.08	316800
	Preferred Dividend Declared A/c Dr. (30000*$0.25)	7500
	To Common Dividend Payable a/c		316800
	To Preferrd Dividend Payable A/c		7500

Oct 15	Retained Earnings A/c Dr.(3960000$351%)	1386000
	To Common Stock Dividend Distributable A/c(3960000$51%)		198000
	To Paid in Capital in Excess of Par A/c(3960000$301%)		1188000

Dec 19	Common Dividend Payable a/c Dr.	316800
	Preferred Dividend Payable a/c Dr.	7500
	To Cash A/c		324300

Dec. 19	Common Stock Dividend Distributable A/c Dr.	1386000
	To Common Stock A/c		1386000

Jan 5 JOURNALIZE THE ENTRIES Split the common stock 4 for 1

Solution

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