Homework Help is Here – Start Your Trial Now!
Business
Accounting
P13-42A Journalizing dividends and treasury stock transactions and preparing the stockholders' equity section of the balance sheet earning Nov. 8 Treasury Stock $4,000 Deerborn Manufacturing Co. completed the following transactions during 2018: Declared a cash dividend on the 6%, $103 par noncumulative preferred stock (1,050 shares outstanding). Declared a $0.20 per share dividend on the 100,000 shares of $2 par value common stock outstanding. The date of record is January 31, and the payment date is February 15. Jan. 16 Feb. 15 Paid the cash dividends. Jun. 10 Split common stock 2-for-1. Jul. 30 Declared a 30% stock dividend on the common stock. The market value of the common stock was $9 per share. Aug. 15 Distributed the stock dividend. Oct. 26 Purchased 1,000 shares of treasury stock at $8 per share. Nov. 8 Sold 500 shares of treasury stock for $10 per share. 30 Sold 300 shares of treasury stock for $4 per share.

P13-42A Journalizing dividends and treasury stock transactions and preparing the stockholders' equity section of the balance sheet earning Nov. 8 Treasury Stock $4,000 Deerborn Manufacturing Co. completed the following transactions during 2018: Declared a cash dividend on the 6%, $103 par noncumulative preferred stock (1,050 shares outstanding). Declared a $0.20 per share dividend on the 100,000 shares of $2 par value common stock outstanding. The date of record is January 31, and the payment date is February 15. Jan. 16 Feb. 15 Paid the cash dividends. Jun. 10 Split common stock 2-for-1. Jul. 30 Declared a 30% stock dividend on the common stock. The market value of the common stock was $9 per share. Aug. 15 Distributed the stock dividend. Oct. 26 Purchased 1,000 shares of treasury stock at $8 per share. Nov. 8 Sold 500 shares of treasury stock for $10 per share. 30 Sold 300 shares of treasury stock for $4 per share.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Question 42
**Journalizing Dividends and Treasury Stock Transactions and Preparing the Stockholders’ Equity Section of the Balance Sheet** **Requirements:** 1. Record the transactions in the general journal. 2. Prepare the stockholders’ equity section of D-Mobile’s balance sheet at October 31, 2018. Assume D-Mobile’s net income for the month was $94,000. ---- **P13-42A Journalizing Dividends and Treasury Stock Transactions** **Recording Transactions:** Deerborn Manufacturing Co. completed the following transactions during 2018: - **Jan. 16**: Declared a cash dividend on the 6%, $103 par noncumulative preferred stock (1,050 shares outstanding). Declared a $0.20 per share dividend on the 100,000 shares of $2 par value common stock outstanding. The date of record is January 31, and the payment date is February 15. - **Feb. 15**: Paid the cash dividends. - **Jul. 30**: Split common stock 2-for-1. - **Jul. 30**: Declared a 30% stock dividend on the common stock. The market value of the common stock was $9 per share. - **Aug. 15**: Distributed the stock dividend. - **Sep. 14**: Purchased 1,000 shares of treasury stock at $8 per share. - **Oct. 30**: Sold 500 shares of treasury stock for $10 per share. - **Oct. 30**: Sold 300 shares of treasury stock for $4 per share. **Requirements:** 1. Record the transactions in Deerborn’s general journal. 2. Prepare the Deerborn’s stockholders’ equity section of the balance sheet as of December 31, 2018. Assume that Deerborn was authorized to issue 2,600 shares of preferred stock and 400,000 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, 2018, is $2,060,000. **Learning Objectives 3, 4** - Nov. 8 Treasury Stock $4,000 --- The document primarily details a series of financial transactions related to dividends and treasury stock for two companies, D-Mobile and Deerborn Manufacturing Co. The transactions include dividend declarations, stock splits, stock
Transcribed Image Text:**Journalizing Dividends and Treasury Stock Transactions and Preparing the Stockholders’ Equity Section of the Balance Sheet** **Requirements:** 1. Record the transactions in the general journal. 2. Prepare the stockholders’ equity section of D-Mobile’s balance sheet at October 31, 2018. Assume D-Mobile’s net income for the month was $94,000. ---- **P13-42A Journalizing Dividends and Treasury Stock Transactions** **Recording Transactions:** Deerborn Manufacturing Co. completed the following transactions during 2018: - **Jan. 16**: Declared a cash dividend on the 6%, $103 par noncumulative preferred stock (1,050 shares outstanding). Declared a $0.20 per share dividend on the 100,000 shares of $2 par value common stock outstanding. The date of record is January 31, and the payment date is February 15. - **Feb. 15**: Paid the cash dividends. - **Jul. 30**: Split common stock 2-for-1. - **Jul. 30**: Declared a 30% stock dividend on the common stock. The market value of the common stock was $9 per share. - **Aug. 15**: Distributed the stock dividend. - **Sep. 14**: Purchased 1,000 shares of treasury stock at $8 per share. - **Oct. 30**: Sold 500 shares of treasury stock for $10 per share. - **Oct. 30**: Sold 300 shares of treasury stock for $4 per share. **Requirements:** 1. Record the transactions in Deerborn’s general journal. 2. Prepare the Deerborn’s stockholders’ equity section of the balance sheet as of December 31, 2018. Assume that Deerborn was authorized to issue 2,600 shares of preferred stock and 400,000 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, 2018, is $2,060,000. **Learning Objectives 3, 4** - Nov. 8 Treasury Stock $4,000 --- The document primarily details a series of financial transactions related to dividends and treasury stock for two companies, D-Mobile and Deerborn Manufacturing Co. The transactions include dividend declarations, stock splits, stock
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS