On December 31, 2014, Flimsy Incorporated had the following balances (all balanc

Question

On December 31, 2014, Flimsy Incorporated had the following balances (all balances are normal): Accounts Amount Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding) $1,000,000 Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) $1,000,000 The following events occurred during 2014 and were not recorded: a. On January 1, Flimsy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. b. Stock dividends were distributed on January 31 to shareholders as of January 25. c. On February 15, Flimsy reacquired 1,000 shares of common stock for $20 each. d. On March 31, Flimsy reissued 250 shares of treasury stock for $25 each. e. On July 1, Flimsy reissued 500 shares of treasury stock for $16 each. f. On October 1, Flimsy declared full year dividends for preferred stock (see outstanding shares in table above). g. Then, paid preferred shareholders on October 15 h. On October 1, Flimsy also declared $1.50 cash dividends for the 104,750 remaining common outstanding shares. i. Then, paid common shareholders on October 15. j. On December 15, Flimsy split common stock 2 shares for 1. Requirements: Prepare journal entries for the transactions listed above.

Explanation / Answer

On December 31, 2014, Flimsy Incorporated had the following balances (all balanc

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