Selected transactions completed by Mead Boating Supply Corporation during the current fiscal year are as follows: Jan. 20 Split the common stock 5 for 1 and reduced the par from $50 to $10 per share. After the split, there were 500,000 common shares outstanding. Apr. 1 Purchased 20,000 shares of the corporation’s own common stock at $30 recording the stock at cost. May 1 Declared semiannual dividends of $1.50 on 24,000 shares of preferred stock and $0.15 on the common stock to stockholders of record on May 20, payable on June 1. June 1 Paid the cash dividends. Aug. 7 Sold 12,000 shares of treasury stock at $38, receiving cash. Nov. 15 Declared semiannual dividends of $1.50 on the preferred stock and $0.08 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $35. Dec. 15 Paid the cash dividends and issued the certificates for the common stock dividend. Instructions Journalize the transactions.
Selected transactions completed by Mead Boating Supply Corporation during the current fiscal year are as follows:
Jan. 20 Split the common stock 5 for 1 and reduced the par from $50 to $10 per share. After the split, there were 500,000 common shares outstanding.
Apr. 1 Purchased 20,000 shares of the corporation’s own common stock at $30 recording the stock at cost.
May 1 Declared semiannual dividends of $1.50 on 24,000 shares of preferred stock and $0.15 on the common stock to stockholders of record on May 20, payable on June 1.
June 1 Paid the cash dividends.
Aug. 7 Sold 12,000 shares of treasury stock at $38, receiving cash.
Nov. 15 Declared semiannual dividends of $1.50 on the preferred stock and $0.08 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $35.
Dec. 15 Paid the cash dividends and issued the certificates for the common stock dividend.
Instructions
Journalize the transactions.
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