During the year ended December 31, 20--, Choi Company completed the following transactions:Apr. 15 Declared a semiannual dividend of $1.50 per share on preferred stock and $0.40 per share on common stock to shareholders of record on May 5, payable on May 10. Currently, 6,000 shares of $50 par preferred stock and 80,000 shares of $1 par common stock are outstanding.May 10 Paid the cash dividends.Oct. 15 Declared semiannual dividend of $1.50 per share on preferred stock and $0.40 per share on common stock to shareholders of record on November 5, payable on November 20.Nov. 20 Paid the cash dividends.22 Declared a 10% stock dividend to common shareholders of record on December 8, distributable on December 16. Market value of the common stock was estimated at $7 per share.Dec. 16 Issued certificates for common stock dividend.20 Board of directors declared a two-for-one common stock split. Required:Prepare journal entries for the transactions

Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Answered: During the year ended December 31,…

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Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

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During the year ended December 31, 20--, Choi Company completed the following transactions:

Apr. 15	Declared a semiannual dividend of $1.50 per share on preferred stock and $0.40 per share on common stock to shareholders of record on May 5, payable on May 10. Currently, 6,000 shares of $50 par preferred stock and 80,000 shares of $1 par common stock are outstanding.
May 10	Paid the cash dividends.
Oct. 15	Declared semiannual dividend of $1.50 per share on preferred stock and $0.40 per share on common stock to shareholders of record on November 5, payable on November 20.
Nov. 20	Paid the cash dividends.
22	Declared a 10% stock dividend to common shareholders of record on December 8, distributable on December 16. Market value of the common stock was estimated at $7 per share.
Dec. 16	Issued certificates for common stock dividend.
20	Board of directors declared a two-for-one common stock split.