eBook Calculator Selected dividend transactions stock split

eBook Calculator Selected dividend transactions, stock split Chart of Accounts Instructions Selected transactions completed by Canyon Fery Boating Corporation during the current fiscal year are as Jan. 8. Split the common stock 2 for 1 and reduced the par from $70 to $35 per share. After the spit, there were 131,000 common shares outstanding. Apr. 30 Declared semiannual dividends of $0.80 on 18,500 shares of preterred stock and so 22 on the common stock payable on July 1 Paid the cash dividends Jul. 1 Oct 31 Declared semiannual dividends of $0.80 on the preferred stock and $0.13 on the common stock (before the stockdividend. In addition, a 4% common stock dividend was declared 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 Dec 31

Solution

Date Account Debit Credit 8-Jan No entry required As only memo entry is required to note that the number of shares and par value has been changed. 30-Apr Retained Earnings $43,620 Cash Dividend payable (18500*$.8+131000*.22) $43,620 (being dividend declared entry recorded) 1-Jul Cash Dividend payable $43,620 Cash $43,620 (being dividend paid in cash recorded) 31-Oct Retained Earnings $31,830 Cash Dividend payable (18500*$.8+131000*.13) $31,830 (being dividend declared entry recorded) Retained Earnings $        262,000 Stock dividend Distributable (131000*4%*$50) $        262,000 (being stock dividend declared) 31-Dec Cash Dividend payable $31,830 Cash $31,830 (being dividend paid in cash recorded) Stock Dividend Distributable $        262,000 Common Stock (131000*4%*$35) $        183,400 Paid-In Capital in Excess of Par-Common Stock $          78,600 (131000*4%*$15)or 5240 stock*$15