Beta Corp. had the following stockholders\' equity account balances as of Januar

Question

Beta Corp. had the following stockholders' equity account balances as of January 1, 2014: Common Stock-$50 par value; 1,000,000 shares authorized 300,000 shares issued and outstanding.$15,000,000 S30,000,000 $70.000.000 Total Stockholders' Equity $115.000.000 Required: Prepare journal entries for each of the following transactions which took place during 2014 a. January 2-Beta purchased 800 shares of its own common stock for $60 per share b. February 5--Sold 300 shares of treasury stock for $65 per share. c. March 15-Sold the remaining 500 shares of treasury stock for $56 per share. d. April 15-Declared a cash dividend of $5 per share payable on May 20,2014 to stockholders of record on May 1,2014. the par value to $25 per share. share. The stock has a par value of $100 per share. a market value of $40 per share on this date. .- Beta split its common stock 2 for and simultaneously reduced e. June 1- f. August 10--Beta sold 30,000 shares of its Preferred Stock for $150 per g. October 1 Beta declared a 10% common stock dividend. Beta common shares had

Explanation / Answer

300,000 shares are issued and outstanding Common shares in the beginning. 2 for 1 split to common stock is carried in transaction e. So now the outstanding shares are:

=300,000 shares×2/1

=600,000 shares

These 600,000 common shares are outstanding at the time of 10% stock dividend.

If any other question then ask in comments.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.