Prepare entries to record the following selected transactions completed during the current fiscal year: Feb. 1 The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000. 11 Purchased 25,000 shares of the company's own stock at $44, recording the treasury stock at cost. May 1 Declared a dividend of $2.50 per share on the outstanding shares of common stock. 15 Paid the dividend declared on May 1. Oct. 19 Declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $55.) Nov. 12 Issued the certificates for the common stock dividend declared on October 19.
Prepare entries to record the following selected transactions completed during the current fiscal year:
Feb. 1 The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000.
11 Purchased 25,000 shares of the company's own stock at $44, recording the
May 1 Declared a dividend of $2.50 per share on the outstanding shares of common stock.
15 Paid the dividend declared on May 1.
Oct. 19 Declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $55.)
Nov. 12 Issued the certificates for the common stock dividend declared on October 19.
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