Carlyon Company listed the following equity items on December 31, 2012:
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Investment in Man Company bonds
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$25,000
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Dividends payable: preferred
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$4,000
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Dividends payable: common
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$40,000
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Preferred stock, 8%, $100 par
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$100,000
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Common stock, $10 par
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$400,000
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Additional paid-in capital on preferred stock
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$20,000
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Additional paid-in capital on common stock
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$210,000
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Retained Earnings
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$270,000
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During 2013, the following transactions occurred:
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Feb.
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2
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Paid the semiannual declared on December 15, 2012.
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Mar.
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5
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Declared a property dividend, payable to common shareholders on April 5 in Man company bonds being held to maturity. The bonds (which have a book value of $25,000) have a current market value of $31,000.
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Apr.
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5
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Paid the property dividend.
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July
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6
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Declared a $4 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on common stock, to be paid on August 17.
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Aug.
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17
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Paid the cash dividends
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Oct.
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15
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Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share.
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Dec.
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3
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Issued the stock dividend.
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28
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Declared a $4 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2014
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Dec 3 Answer Required
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Debit
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Credit
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Common stock to Be distributed
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xxxxxx
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Common stock, $10 par
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xxxxxx
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Dec 28 Answer Required
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Debit
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Credit
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Retained Earnings
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xxxxxx
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Dividends Payable Preferred
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xxxxxx
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Dividends Payable Common
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xxxxxx
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