Selected transactions completed by Breezeway Construction du

Selected transactions completed by Breezeway Construction during the current fiscal year are as follows:

Journalize these transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

Journalize each of the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

1

2

3

4

5

6

7

8

9

10

11

12

13

Solution

1

2

3

4

5

6

7

8

9

10

11

12

13

Feedback

Explanation

Feb.	3	Split the common stock 2-for-1 and reduced the par from $40 to $20 per share. After the split, there were 250,000 common shares outstanding.
Apr.	10	Declared semiannual dividends of $1.50 on 18,000 shares of preferred stock and $0.08 on the common stock to stockholders of record on May 10, payable on June 9.
June	9	Paid the cash dividends.
Oct.	10	Declared semiannual dividends of $1.50 on the preferred stock and $0.04 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36.
Dec.	9	Paid the cash dividends and issued the certificates for the common stock dividend.

Solution

Date account titles & Explanations Debit Credit 3-Feb No Entry 10-Apr Cash Dividend-common stock (250000*0.08) 20000 Cash dividend -preferred stock (1.5*18000) 27000 Dividends payable 47000 9-Jun Dividends payable 47,000 cash 47,000 10-Oct Cash Dividend-common stock (250,000*0.04) 10000 Cash dividend -preferred stock (1.5*18000) 27000 Dividends payable 37000 10-Oct Stock dividends (5000*36) 180000 Stock dividends distributable (5000*20) 100000 paid in capital in excess of par-common stock 80000 ( shares 250,000*2%=5000 shares) 9-Dec Dividends payable 37,000 cash 37,000 Stock dividend distributable 100,000 common Stock 100,000