FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Selected transactions completed by Mead Boating Supply Corporation during the current fiscal year are as follows:
Jan. 20 Split the common stock 5 for 1 and reduced the par from $50 to $10 per share. After the split, there were 500,000 common shares outstanding.
Apr. 1 Purchased 20,000 shares of the corporation’s own common stock at $30 recording the stock at cost.
May 1 Declared semiannual dividends of $1.50 on 24,000 shares of preferred stock and $0.15 on the common stock to stockholders of record on May 20, payable on June 1.
June 1 Paid the cash dividends.
Aug. 7 Sold 12,000 shares of treasury stock at $38, receiving cash.
Nov. 15 Declared semiannual dividends of $1.50 on the preferred stock and $0.08 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 $35.
Dec. 15 Paid the cash dividends and issued the certificates for the common stock dividend.
Instructions
Journalize the transactions.
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