Carlyon Company listed the following items in its December 31, 2018, financial statements:Investment in Man Company bonds$24,000Dividends payable: preferred4,000Dividends payable: common50,000Preferred stock, 8%, $100 par100,000Common stock, $10 par500,000Additional paid-in capital on preferred stock20,000Additional paid-in capital on common stock262,500Retained earnings270,000 During 2019, the following transactions occurred:Feb.2Paid the semiannual dividends declared on December 15, 2018.Mar.5Declared a property dividend, payable to common shareholders on April 5 in Man Company bonds being held to maturity. The bonds (which have a book value of $24,000) have a current market value of $30,000.Apr.5Paid the property dividend.July6Declared a $4 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on common stock, to be paid on August 17.Aug.17Paid the cash dividends.Oct.15Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share.Dec.3Issued the stock dividend. 28Declared a $4 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2020. Required: Next Level Prepare journal entries to record the preceding transactions.

feb 2 dividend payable : preferred 4,000 dividend payable : common 40,000 to cash…

Answered: 100,000 Common stock, $10 par 500,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Carlyon Company listed the following items in its December 31, 2018, financial statements:

Investment in Man Company bonds	$24,000
Dividends payable: preferred	4,000
Dividends payable: common	50,000
Preferred stock, 8%, $100 par	100,000
Common stock, $10 par	500,000
Additional paid-in capital on preferred stock	20,000
Additional paid-in capital on common stock	262,500
Retained earnings	270,000

During 2019, the following transactions occurred:

Feb.	2	Paid the semiannual dividends declared on December 15, 2018.
Mar.	5	Declared a property dividend, payable to common shareholders on April 5 in Man Company bonds being held to maturity. The bonds (which have a book value of $24,000) have a current market value of $30,000.
Apr.	5	Paid the property dividend.
July	6	Declared a $4 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on common stock, to be paid on August 17.
Aug.	17	Paid the cash dividends.
Oct.	15	Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share.
Dec.	3	Issued the stock dividend.
	28	Declared a $4 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2020.

Required:

Next Level Prepare journal entries to record the preceding transactions.

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