Record the transactions in journal Jan 6: declared a cash dividend on the 9000 s

Question

Record the transactions in journal

Jan 6: declared a cash dividend on the 9000 shares of 4.25, no-par preferred stock standing. Declared a $.60 per share divident on 14000 shares of common stock outstanding. the date record if Jan 17th, and the payment date is Jan 20th

Jan 20: paid cash dividends.

March 31 Split common stock 2-for-1 by calling the 14000 shares of $10 par common stock and issuing new stock in its place

April 18: Declared and distributed a 15% stock dividend on the common stock. The market value of the common stock was $32 per share.

June 18: Purchased 1400 shares of treasury common stock at $33 per share

Dec 22 Sold 600 shares of treasury common stock for $38 per share

Explanation / Answer

6-Jan Preferred Dividend Dr 38250           preferred dividend payable Cr 38250 ( 9000*4.25) 17-Jan Retained earnings Dr 8400           Dividend payable Cr 8400 ( 14000*0.60) 20-Jan Preference dividend payable Dr 38250 Dividend payable Dr 8400             Cash Cr 46650 31-Mar Only a memo entry to record change in number of shares and the par value 14000 shares become 28000 shares and par value of $ 10 to $ 5 18-Apr Retained earnings Dr 134400 (28000*15%*32)             Common stock dividend payable Cr 42000 (28000*15%*10)               Paid in capital in excess of par Cr 92400 (BF) Common stock dividend distributable Dr 42000              Common stock Cr 42000 18-Jun Treasury stock Dr 46200                Cash Cr 46200 22-Dec Cash Dr 22800 ( 600*38)           Treasury stock Cr 19800 (600*33)           [aid in capital in excess of par - treasury stock Cr 3000 (600*5)

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