Serra do Mar Corporation manufactures and distributes leisure clothing. Select transactions completed by Serra do Mar during the current fiscal year are as follows: 8. Split the common stock 3 for 1 and reduced the par from $18 to $6 per share. After the split, there were 600,000 common shares outstanding. Mar. 20. Declared semiannual dividends of $1 on 20,000 shares of preferred stock and $0.14 on the 600,000 shares of $10 par common stock to stockholders of record on March 31, payable on April 20. Jan. Apr. 20. Paid the cash dividends. May 8. Purchased 50,000 shares of the corporation's own common stock at $48, recording the stock at cost. rations: Urgazation, caps Aug. 2. Sold 30,000 shares of treasury stock at $56, receiving cash. Sept. 15. Declared semiannual dividends of $1 on the preferred stock and $0.07 on the common stock (before the stock dividend). In addition, a 1% com- mon stock dividend was declared on the common stock outstanding be capitalized at the fair market value of the common stock, which is to estimated at $52. Oct. 15. Paid the cash dividends and issued the certificates for the common stock dividend. Instructions Journalize the transactions.

Serra do Mar Corporation manufactures and distributes leisure clothing. Select transactions completed by Serra do Mar during the current fiscal year are as follows: 8. Split the common stock 3 for 1 and reduced the par from $18 to $6 per share. After the split, there were 600,000 common shares outstanding. Mar. 20. Declared semiannual dividends of $1 on 20,000 shares of preferred stock and $0.14 on the 600,000 shares of $10 par common stock to stockholders of record on March 31, payable on April 20. Jan. Apr. 20. Paid the cash dividends. May 8. Purchased 50,000 shares of the corporation's own common stock at $48, recording the stock at cost. rations: Urgazation, caps Aug. 2. Sold 30,000 shares of treasury stock at $56, receiving cash. Sept. 15. Declared semiannual dividends of $1 on the preferred stock and $0.07 on the common stock (before the stock dividend). In addition, a 1% com- mon stock dividend was declared on the common stock outstanding be capitalized at the fair market value of the common stock, which is to estimated at $52. Oct. 15. Paid the cash dividends and issued the certificates for the common stock dividend. Instructions Journalize the transactions.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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