Selected transactions completed by ATV Discount Corporation during the current f
ID: 2594183 • Letter: S
Question
Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows:
Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,092,000 common shares outstanding.
Purchased 39,500 shares of the corporation’s own common stock at $29, recording the stock at cost
Declared semiannual dividends of $0.60 on 74,300 shares of preferred stock and $0.14 on the common stock to stockholders of record on May 15, payable on June 15.
Paid the cash dividends.
Sold 28,500 shares of treasury stock at $33, receiving cash.
Declared semiannual dividends of $0.60 on the preferred stock and $0.14 on the common stock (before the stock dividend). In addition, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $38. The dividend date of record is November 15 payable on December 19.
Paid the cash dividends and issued the certificates for the common stock dividend.
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.
General Ledger
ASSETS
110Cash
120 Accounts Receivable
131 Notes Receivable
132Interest Receivable
141Merchandise Inventory
145Office Supplies
151Prepaid Insurance
181Land
193Equipment
194Accumulated Depreciation-Equipment
LIABILITIES
210Accounts Payable
221Notes Payable
226Interest Payable
231Cash Dividends Payable
241Salaries Payable
261Mortgage Note Payable
Interest Revenu
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
Jan. 5.Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,092,000 common shares outstanding.
Mar. 10.Purchased 39,500 shares of the corporation’s own common stock at $29, recording the stock at cost
Apr. 30.Declared semiannual dividends of $0.60 on 74,300 shares of preferred stock and $0.14 on the common stock to stockholders of record on May 15, payable on June 15.
June 15.Paid the cash dividends.
Aug. 20.Sold 28,500 shares of treasury stock at $33, receiving cash.
Oct. 15Declared semiannual dividends of $0.60 on the preferred stock and $0.14 on the common stock (before the stock dividend). In addition, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $38. The dividend date of record is November 15 payable on December 19.
Dec. 19.Paid the cash dividends and issued the certificates for the common stock dividend.
Explanation / Answer
Date
Chart of Accounts
Particulars
Debit
Credit
Jan 5
311
Common Stock (Par value $75)
27300000 (1092000*25)
311
Common Stock (Par value $25)
27300000
Mar 10
315
Treasury Stock
1145500 (39500*29)
110
Cash
1145500
Apr 30
351
Cash Dividends
191930
(1052500*0.14 + 74300*0.60)
231
Cash Dividends payable
191930
June 15
231
Cash Dividends payable
191930
110
Cash
191930
Aug 20
315
Treasury Stock
940500 (28500*33)
110
Cash
940500
Oct 15
351
Cash Dividends
191930
(1024000*0.14 + 74300*0.60)
187940
231
Cash Dividends payable
187940
Dec 19
231
Cash Dividends payable
187940
110
Cash
187940
Dec 19
340
Retained Earnings
1945600
(1024000*5%*25)
311
Common Stock
1280000
312
Paid –in –capital in Excess of par – Common Stock
665600
(1024000*5%*13)
Date
Chart of Accounts
Particulars
Debit
Credit
Jan 5
311
Common Stock (Par value $75)
27300000 (1092000*25)
311
Common Stock (Par value $25)
27300000
Mar 10
315
Treasury Stock
1145500 (39500*29)
110
Cash
1145500
Apr 30
351
Cash Dividends
191930
(1052500*0.14 + 74300*0.60)
231
Cash Dividends payable
191930
June 15
231
Cash Dividends payable
191930
110
Cash
191930
Aug 20
315
Treasury Stock
940500 (28500*33)
110
Cash
940500
Oct 15
351
Cash Dividends
191930
(1024000*0.14 + 74300*0.60)
187940
231
Cash Dividends payable
187940
Dec 19
231
Cash Dividends payable
187940
110
Cash
187940
Dec 19
340
Retained Earnings
1945600
(1024000*5%*25)
311
Common Stock
1280000
312
Paid –in –capital in Excess of par – Common Stock
665600
(1024000*5%*13)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.