
Journalize the transactions.

Answer to Problem 5PB
Journalize the transactions for Corporation WYO.
Date | Account Titles and Explanation | Debit ($) | Credit ($) | |
January | 15 | No entry is required | ||
March | 1 | Cash Dividends (1) | 81,000 | |
Cash Dividends Payable | 81,000 | |||
(To record the declaration of cash dividends) | ||||
July | 10 | Cash Dividends Payable (1) | 81,000 | |
Cash | 81,000 | |||
(To record the payment of cash dividends) | ||||
May | 31 | 1,920,000 | ||
Cash | 1,920,000 | |||
(To record the purchase of 60,000 shares of treasury stock) | ||||
August | 17 | Cash | 1,520,000 | |
Treasury stock | 1,280,000 | |||
Paid-in capital from treasury stock | 240,000 | |||
(To record sale of treasury stock for above the cost price) | ||||
September | 1 | Cash Dividends (3) | 95,200 | |
Cash Dividends Payable | 95,200 | |||
(To record the declaration of cash dividends) | ||||
October | 1 | Stock Dividends (6) | 312,000 | |
Common Stock Dividends Distributable (7) | 234,000 | |||
Paid-in Capital in excess of par Value-Common stock (8) | 78,000 | |||
(To record the declaration of stock dividends) | ||||
October | 31 | Cash Dividends Payable (3) | 95,200 | |
Cash | 95,200 | |||
(To record the payment of cash dividends) | ||||
October | 31 | Common Stock Dividends Distributable (7) | 234,000 | |
Common Stock | 234,000 | |||
(To record the distribution of stock dividends) |
Table (1)
Explanation of Solution
Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.
Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.
Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock.
Stated value: It refers to an amount per share, which is assigned by the board of directors to no par value stock.
Issue of common stock for non-cash assets or services: Corporations often issue common stock for the services received from attorneys or consultants as compensation, or for the purchase of non-cash assets such as land, buildings, or equipment.
This is a financial statement that shows the amount of the net income retained by a company at a particular point of time for reinvestment and pays its debts and obligations. It shows the amount of retained earnings that is not paid as dividends to the shareholders.
Working note:
Compute the amount of total cash dividends declared on March 1.
(1)
Compute number of common shares outstanding after the purchase and sale of treasury stock.
(2)
Compute the amount of total cash dividends declared on September 1.
(3)
Compute the stock dividends shares.
(5)
Compute the stock dividends amount payable to common stockholders.
(6)
Compute common stock dividends distributable value.
(7)
Compute paid-in capital in excess of par value-common stock.
(8)
Note:
Stock split does not affect the accounting equation of assets, liabilities, or stockholders’ equity. It will affect only the number of shares outstanding and value per share. Hence, on January 15 no entry is passed.
Want to see more full solutions like this?
Chapter 12 Solutions
Financial And Managerial Accounting
- b. Prepare the journal entries to record the standard costing information for November.Note: Record any multiple debits or any multiple credits in alphabetical order by account name1)To record aluminum price variance 2)To record copper price variance 3)To record aluminum quantity variance 4)To record copper quantity variance 5)To record labor variances 6)To record variable overhead variances 7)To record fixed overhead variancearrow_forward4 POINTarrow_forwardOn January 1, 2015, Carlisle Enterprises reports net assets of $920,500, although equipment (with a six-year life) having a book value of $510,000 is worth $590,000 and an unrecorded patent is valued at $52,300. Horizon Corporation pays $845,000 on that date for an 85 percent ownership in Carlisle. If the patent is to be written off over a 12-year period, at what amount should it be reported on the consolidated statements on December 31, 2017?arrow_forward
- what is the total cost of the job when it is completed in October?arrow_forwardJordan Enterprises has inventory days of 52, accounts receivable days of 25, and accounts payable days of 34. What is its cash conversion cycle? A.) 43 days B.) 58 days C.) 65 days D.) 72 daysarrow_forwardThe ending inventory is?arrow_forward
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeAccounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,




