1 Entries for Selected Corporate Transactions West Yellowsto

1. Entries for Selected Corporate Transactions West Yellowstone Outfitters Corporation manufactures and distributes leisure clothing. Selected transactions completed by West Yellowstone Outfitters during the current fiscal year are as follows: Jan. 15. Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 800,000 common shares outstanding. Mar. 1. Declared semiannual dividends of $0.25 on 100,000 shares of preferred stock and $0.07 on the 800,000 shares of $30 par common stock to stockholders of record on March 31, payable on April 30. Apr. 30. Paid the cash dividends. May 31. Purchased 60,000 shares of the corporation\'s own common stock at $32, recording the stock at cost. Aug. 17. Sold 40,000 shares of treasury stock at $38, receiving cash. Sept. 1. Dedlared semiannual dividends of $0.25 on the preferred stock and $0.09 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $40. Oct. 31. Paid the cash dividends and issued the certificates for the common stock dividend. Required: Journalize the transactions. If no entry is required, select \"No entry required from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank Jan. 15. Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 800,000 common shares outstanding.

Solution

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Date Account Debit Credit Jan 15 No Entry Required Mar 1 Cash Dividend 89000 (0.25*100000)+(0.08*800000) Cash Dividend Payable 89000 Apr 30 Cash Dividend Payable 89000 Cash 89000 May 31 Treasury Stock 1920000 60000*32 Cash 1920000 Aug 17 Cash 1520000 40000*38 Paid in Capital from sale of treasury stock 240000 Treasury Stock 1280000 40000*32 Sep 1 Cash Dividend 97000 (0.25*100000)+(0.09*800000) Cash Dividend Payable 97000 Sep 1 Stock Dividend (800000*1%)*40 320000 Stock Dividend Distributable 240000 Paid in capital in excess of par-common stock 80000 Oct 31 Cash Dividend Payable 97000 Cash 97000 Oct 31 Stock Dividend Distributable 240000 Common Stock 240000