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3. Split the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the split, there we 8 No Entry Required No Entry Required 88 Feedback 30. Declared semiannual dividends of $0.75 on 18,000 shares of preferred stock and $0.28 on the commo 30 Cash Dividends

3. Split the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the split, there we 8 No Entry Required No Entry Required 88 Feedback 30. Declared semiannual dividends of $0.75 on 18,000 shares of preferred stock and $0.28 on the commo 30 Cash Dividends

FINANCIAL ACCOUNTING
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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### Selected Transactions of Canyon Ferry Boating Corporation **Overview:** Canyon Ferry Boating Corporation completed several transactions during the current fiscal year. This section outlines the journalization of these transactions. **Instructions:** If an entry is not required, select "No Entry Required" and leave the amount boxes blank. Leave a box blank if no entry amount is needed. --- **Transaction Details:** **Jan. 8:** - Event: Split the common stock 2 for 1 and reduced the par value from $80 to $40 per share. After the split, there were 150,000 common shares outstanding. - Journal Entry: - No Entry Required - No Entry Required **Apr. 30:** - Event: Declared semiannual dividends of $0.75 on 18,000 shares of preferred stock and $0.28 on the common stock, payable on July 1. - Journal Entry: - Debit: Cash Dividends - Credit: Cash Dividends Payable **July 1:** - Event: Paid the cash dividends. - Journal Entry: - Debit: Cash Dividends Payable - Credit: Cash **Oct. 31:** - Event: Declared semiannual dividends of $0.75 on the preferred stock and $0.14 on the common stock (before the stock dividend). Additionally, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $52. - Journal Entry for Cash Dividends: - Debit: Cash Dividends - Credit: Cash Dividends Payable - Journal Entry for Stock Dividends: - Debit: Stock Dividends - Credit: --- **Graph/Diagram Description (if any):** There are no graphs or diagrams in the provided material. The content is presented in a structured tabular format for clarity of transactions and journal entries.
Transcribed Image Text:### Selected Transactions of Canyon Ferry Boating Corporation **Overview:** Canyon Ferry Boating Corporation completed several transactions during the current fiscal year. This section outlines the journalization of these transactions. **Instructions:** If an entry is not required, select "No Entry Required" and leave the amount boxes blank. Leave a box blank if no entry amount is needed. --- **Transaction Details:** **Jan. 8:** - Event: Split the common stock 2 for 1 and reduced the par value from $80 to $40 per share. After the split, there were 150,000 common shares outstanding. - Journal Entry: - No Entry Required - No Entry Required **Apr. 30:** - Event: Declared semiannual dividends of $0.75 on 18,000 shares of preferred stock and $0.28 on the common stock, payable on July 1. - Journal Entry: - Debit: Cash Dividends - Credit: Cash Dividends Payable **July 1:** - Event: Paid the cash dividends. - Journal Entry: - Debit: Cash Dividends Payable - Credit: Cash **Oct. 31:** - Event: Declared semiannual dividends of $0.75 on the preferred stock and $0.14 on the common stock (before the stock dividend). Additionally, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $52. - Journal Entry for Cash Dividends: - Debit: Cash Dividends - Credit: Cash Dividends Payable - Journal Entry for Stock Dividends: - Debit: Stock Dividends - Credit: --- **Graph/Diagram Description (if any):** There are no graphs or diagrams in the provided material. The content is presented in a structured tabular format for clarity of transactions and journal entries.
**Journal Entries for Dividend Declaration and Payment** **October 31: Declaration of Dividends** On October 31, the company declared semiannual dividends as follows: - Preferred Stock: $0.75 per share - Common Stock: $0.14 per share (before the stock dividend) Additionally, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $52. **Journal Entries for October 31:** - **Cash Dividends:** - Debit: Cash Dividends - Credit: Cash Dividends Payable - **Stock Dividends:** - Debit: Stock Dividends - Credit: Stock Dividends Distributable - Credit: Paid-In Capital in Excess of Par-Common Stock **December 31: Payment of Dividends** On December 31, the company paid the cash dividends and issued certificates for the common stock dividend. **Journal Entries for December 31:** - **Payment:** - Debit: Cash Dividends Payable ✔ - Credit: Cash ✔ - **Issuance:** - Debit: Stock Dividends Distributable ✔ - Credit: Common Stock ✔ *Note: Boxes in the image are used for recording amounts.*
Transcribed Image Text:**Journal Entries for Dividend Declaration and Payment** **October 31: Declaration of Dividends** On October 31, the company declared semiannual dividends as follows: - Preferred Stock: $0.75 per share - Common Stock: $0.14 per share (before the stock dividend) Additionally, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $52. **Journal Entries for October 31:** - **Cash Dividends:** - Debit: Cash Dividends - Credit: Cash Dividends Payable - **Stock Dividends:** - Debit: Stock Dividends - Credit: Stock Dividends Distributable - Credit: Paid-In Capital in Excess of Par-Common Stock **December 31: Payment of Dividends** On December 31, the company paid the cash dividends and issued certificates for the common stock dividend. **Journal Entries for December 31:** - **Payment:** - Debit: Cash Dividends Payable ✔ - Credit: Cash ✔ - **Issuance:** - Debit: Stock Dividends Distributable ✔ - Credit: Common Stock ✔ *Note: Boxes in the image are used for recording amounts.*
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