Jan. 5. JOURNALIZE THE ENTRIES. Split the common stock 4 for 1 and reduced the p

Question

Jan.

5.

JOURNALIZE THE ENTRIES.

Split the common stock 4 for 1 and reduced the par from $20 to $5 per share. After the split, there were 4,000,000 common shares outstanding.

Paid the cash dividends and issued the certificates for the common stock dividend.

Journalize the entries

Jan.

5.

JOURNALIZE THE ENTRIES.

Split the common stock 4 for 1 and reduced the par from $20 to $5 per share. After the split, there were 4,000,000 common shares outstanding.

Mar. 10. Purchased 100,000 shares of the corporation’s own common stock at $30, recording the stock at cost. Apr. 30. Declared semiannual dividends of $0.25 on 30,000 shares of preferred stock and $0.08 on the common stock to stockholders of record on May 15, payable on June 15. June 15. Paid the cash dividends. Aug. 20. Sold 60,000 shares of treasury stock at $40, receiving cash. Oct. 15. Declared semiannual dividends of $0.25 on the preferred stock and $0.08 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $35. 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.

CHART OF ACCOUNTS ATV Discount Corporation General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Stock Dividends Distributable 351 Cash Dividends 352 Stock Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense

Journalize the entries

Explanation / Answer

Journal Entries :-

Common Dividend Declared A/c Dr. (4000000-100000+60000)*$0.08

Date Particulars Debit($) Credit($) Jan. 5 Comman Stock @ $20 a/c Dr. 80000000 To Common Stock @ $5 a/c 80000000 Mar. 10 Trasury Stock A/c Dr. 3000000 To Cash A/c (100000*$30) 3000000 April 30 Common Dividend Declared a/c Dr ((4000000-100000)*$0.08) 312000 Preferred Dividend Declared a/c Dr. (30000*$0.25) 7500 To Common Dividend Payable A/c 312000 To Preferred Dividend Payable A/c 7500 Jun 15 Common Dividend Payable A/c Dr. 312000 Preferred Dividend Payable a/c Dr. 7500 To Cash A/c 328500 Aug. 20 Cash A/c Dr. (60000*$40) 2400000 To Treasury Stock A/c ($2400000*(60000/100000)) 1440000 To additional Paid in Capital A/c 960000 Oct 15

Common Dividend Declared A/c Dr. (4000000-100000+60000)*$0.08

316800 Preferred Dividend Declared A/c Dr. (30000*$0.25) 7500 To Common Dividend Payable a/c 316800 To Preferrd Dividend Payable A/c 7500 Oct 15 Retained Earnings A/c Dr.(3960000*$35*1%) 1386000 To Common Stock Dividend Distributable A/c(3960000*$5*1%) 198000 To Paid in Capital in Excess of Par A/c(3960000*$30*1%) 1188000 Dec 19 Common Dividend Payable a/c Dr. 316800 Preferred Dividend Payable a/c Dr. 7500 To Cash A/c 324300 Dec. 19 Common Stock Dividend Distributable A/c Dr. 1386000 To Common Stock A/c 1386000

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