Selected transactions completed by Canyon Ferry Boating Corporation during the c

Question

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:

Journalize the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

8 Split the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the split, there were 157,000 common shares outstanding Apr 30 Declared semiannual dividends of $0.65 on 19,000 shares of preferred stock and $0.24 on the common stock payable on July 1. Paid the cash dividends. Declared semiannual dividends of $0.65 on the preferred stock and $0.11 on the common stock (before the stock dividend). In addition, a 396 common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $52. Paid the cash dividends and issued the certificates for the common stock dividend Jul. 1 Oct. 31 Dec. 31

Explanation / Answer

Dec 31

Jan 8
Split the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the split, there were 157,000 common shares outstanding.
Stock splits need no journal entries. 30-Apr Retained earnings 50030 Cash dividends payable 50030 01-Jul Cash dividends payable 50030 Cash 50030 31-Oct Retained earnings 29620 Cash Dividends 29620 Retained earnings 244920 Stock Dividends Distributable 188400 Paid-In Capital in Excess of Par, Common Stock 56520

Dec 31

Cash Dividends Payable 29620 Cash 29620 Stock Dividends Distributable Common Stock 188400 188400

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