prepare entries to record the following selected transactions completed during the current fiscal year: Jan. 1 The board of directors declared a stock split which reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000. 10 Purchased 25,000 shares of own stock at $44, recording the treasury stock at cost. March 1 Declared a dividend of $2 per share on the outstanding shares of common stock. 15 Paid the dividend declared on March 1 July 1 Declared a 1% stock dividend on common stock outstanding (the fair market value of the stock to be issued is $50). July 15 Issued the certificates for the common stock dividend declared. Description Debit Credit 1/1 1/10
prepare entries to record the following selected transactions completed during the current fiscal year:
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Jan. 1 |
The board of directors declared a stock split which reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000. |
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10 |
Purchased 25,000 shares of own stock at $44, recording the |
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March 1 |
Declared a dividend of $2 per share on the outstanding shares of common stock. |
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15 |
Paid the dividend declared on March 1 |
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July 1 |
Declared a 1% stock dividend on common stock outstanding (the fair market value of the stock to be issued is $50). |
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July 15 |
Issued the certificates for the common stock dividend declared.
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