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Fark Tart Limited was a corporation that made hair growth stimulants. The company had 425,000 shares of common stock authorized; 350,000 shares issued; 75,000 shares unissued; 250,000 shares outstanding; and 100,000 shares of Treasury Stock. Par value was $10 per share. In the month of February 2020, the company had the following transactions regarding their stock: February 1: Cash dividends of $.50 per share were declared. February 5: A 10% stock dividend was declared. Fair market price of the stock was $15 per share. February 10: Recipients of the cash dividends and stock dividends were determined. February 15: Cash dividends were paid. February 20: The stock dividend was given out. December 31: All accounts were closed out (year-end). Required: Record the transactions listed above.

Fark Tart Limited was a corporation that made hair growth stimulants. The company had 425,000 shares of common stock authorized; 350,000 shares issued; 75,000 shares unissued; 250,000 shares outstanding; and 100,000 shares of Treasury Stock. Par value was $10 per share. In the month of February 2020, the company had the following transactions regarding their stock: February 1: Cash dividends of $.50 per share were declared. February 5: A 10% stock dividend was declared. Fair market price of the stock was $15 per share. February 10: Recipients of the cash dividends and stock dividends were determined. February 15: Cash dividends were paid. February 20: The stock dividend was given out. December 31: All accounts were closed out (year-end). Required: Record the transactions listed above.

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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Problem #6 Corporations Fark Tart Limited was a corporation that made hair growth stimulants. The company had 425,000 shares of common stock authorized; 350,000 shares issued; 75,000 shares unissued; 250,000 shares outstanding; and 100,000 shares of Treasury Stock. Par value was $10 per share. In the month of February 2020, the company had the following transactions regarding their stock: February 1: Cash dividends of $.50 per share were declared. February 5: A 10% stock dividend was declared. Fair market price of the stock was $15 per share. February 10: Recipients of the cash dividends and stock dividends were determined. February 15: Cash dividends were paid. February 20: The stock dividend was given out. December 31: All accounts were closed out (year-end). Required: Record the transactions listed above.
Transcribed Image Text:Problem #6 Corporations Fark Tart Limited was a corporation that made hair growth stimulants. The company had 425,000 shares of common stock authorized; 350,000 shares issued; 75,000 shares unissued; 250,000 shares outstanding; and 100,000 shares of Treasury Stock. Par value was $10 per share. In the month of February 2020, the company had the following transactions regarding their stock: February 1: Cash dividends of $.50 per share were declared. February 5: A 10% stock dividend was declared. Fair market price of the stock was $15 per share. February 10: Recipients of the cash dividends and stock dividends were determined. February 15: Cash dividends were paid. February 20: The stock dividend was given out. December 31: All accounts were closed out (year-end). Required: Record the transactions listed above.
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