Serra do Mar Corporation manufactures and distributes leisure clothing. Selected transactions completed by Serra do Mar during the current fiscal year are as follows: Jan. 8. Split the common stock 3 for 1 and reduced the par from $18 to $6 per share. After the split, there were 600,000 common shares outstanding. Mar. 20. Declared semiannual dividends of $1 on 20,000 shares of preferred stock and $0.14 on the 600,000 shares of $10 par common stock to stockholders of record on March 31, payable on April 20. Apr. 20. Paid the cash dividends. May 8. Purchased 50,000 shares of the corporation's own common stock at $48, recording the stock at cost. Organization, Capital Stock Transactions, and Dividends Aug. 2. Sold 30,000 shares of treasury stock at $56, receiving cash. Sept. 15. Declared semiannual dividends of $1 on the preferred stock and $0.07 on the common stock (before the stock dividend). In addition, a 1% com- mon stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $52. Oct. 15. Paid the cash dividends and issued the certificates for the coon stock dividend. Instructions Journalize the transactions.

Serra do Mar Corporation manufactures and distributes leisure clothing. Selected transactions completed by Serra do Mar during the current fiscal year are as follows: Jan. 8. Split the common stock 3 for 1 and reduced the par from $18 to $6 per share. After the split, there were 600,000 common shares outstanding. Mar. 20. Declared semiannual dividends of $1 on 20,000 shares of preferred stock and $0.14 on the 600,000 shares of $10 par common stock to stockholders of record on March 31, payable on April 20. Apr. 20. Paid the cash dividends. May 8. Purchased 50,000 shares of the corporation's own common stock at $48, recording the stock at cost. Organization, Capital Stock Transactions, and Dividends Aug. 2. Sold 30,000 shares of treasury stock at $56, receiving cash. Sept. 15. Declared semiannual dividends of $1 on the preferred stock and $0.07 on the common stock (before the stock dividend). In addition, a 1% com- mon stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $52. Oct. 15. Paid the cash dividends and issued the certificates for the coon stock dividend. Instructions Journalize the transactions.

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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