of Journal Instructions Selected transactions completed by C

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 remaining

Solution

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