At the end of its last fiscal year, December 31, 2021, Sink Corporation had issued 360,000 shares of its $3 par value common stock, 310,000 shares of which were outstanding. A select list of fiscal year 2022 transactions of Sink Corporation are listed below: Date Transaction Description 3/1/22 Declared a $4/share cash dividend on the common stock for stockholders of record on 3/15/22, payable on 3/31/22. 3/31/22 Paid the cash dividend declared on 3/1/22. 4/18/22 Sold all its treasury stock for $27/share. Sink purchased the treasury stock for $19/share. Sink uses the cost method when accounting for treasury stock. 5/7/22 Issued 40,000 shares of common stock for $32/share! 6/30/22 Split the common stock 3 for 1. 7/26/22 Purchased 30,000 shares of its own common stock at $8 per share. 9/1/22 Declared a 10% stock dividend to stockholders of record on 9/15/22, issuable on 9/30/22. The market price of Sink's stock on 9/1/22 was $11/share. 9/30/22 Issued the certificates for the common stock dividend declared on 9/1/22. Required: Prepare journal entries (journal entry descriptions NOT required) for Sink Corporation to record the transactions above in its fiscal 2022 general ledger.
At the end of its last fiscal year, December 31, 2021, Sink Corporation had issued 360,000 shares of its $3 par value common stock, 310,000 shares of which were outstanding. A select list of fiscal year 2022 transactions of Sink Corporation are listed below: Date Transaction Description 3/1/22 Declared a $4/share cash dividend on the common stock for stockholders of record on 3/15/22, payable on 3/31/22. 3/31/22 Paid the cash dividend declared on 3/1/22. 4/18/22 Sold all its treasury stock for $27/share. Sink purchased the treasury stock for $19/share. Sink uses the cost method when accounting for treasury stock. 5/7/22 Issued 40,000 shares of common stock for $32/share! 6/30/22 Split the common stock 3 for 1. 7/26/22 Purchased 30,000 shares of its own common stock at $8 per share. 9/1/22 Declared a 10% stock dividend to stockholders of record on 9/15/22, issuable on 9/30/22. The market price of Sink's stock on 9/1/22 was $11/share. 9/30/22 Issued the certificates for the common stock dividend declared on 9/1/22. Required: Prepare journal entries (journal entry descriptions NOT required) for Sink Corporation to record the transactions above in its fiscal 2022 general ledger.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 1
At the end of its last fiscal year, December 31, 2021, Sink Corporation had issued
360,000 shares of its $3 par value common stock, 310,000 shares of which were
outstanding. A select list of fiscal year 2022 transactions of Sink Corporation are listed
below:
Date
Transaction Description
3/1/22
Declared a $4/share cash dividend on the common stock for stockholders of
record on 3/15/22, payable on 3/31/22.
3/31/22
Paid the cash dividend declared on 3/1/22.
4/18/22
Sold all its treasury stock for $27/share. Sink purchased the treasury stock
for $19/share. Sink uses the cost method when accounting for treasury
stock.
5/7/22
Issued 40,000 shares of common stock for $32/share!
6/30/22
Split the common stock 3 for 1.
7/26/22
Purchased 30,000 shares of its own common stock at $8 per share.
9/1/22
Declared a 10% stock dividend to stockholders of record on 9/15/22,
issuable on 9/30/22. The market price of Sink's stock on 9/1/22 was
$11/share.
9/30/22
Issued the certificates for the common stock dividend declared on 9/1/22.
Required:
Prepare journal entries (journal entry descriptions NOT required) for Sink Corporation to record
the transactions above in its fiscal 2022 general ledger.
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