Entries for Selected Corporate Transactions
Selected transactions completed by Big Water Boating Corporation during the current fiscal year are as follows:
Instructions:
Journalize the transactions. If no entry is required, select "No entry required" from the dropdown box and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.
Jan. 3. Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 480,000 common shares outstanding.
Apr. 7. Purchased 38,000 shares of the corporation's own common stock at $29, recording the stock at cost.
May 1. Declared semiannual dividends of $4.20 on 35,000 shares of preferred stock and $0.09 on the common stock to stockholders of record on May 15, payable on June 1.
June 1. Paid the cash dividends.
July 29. Sold 27,000 shares of treasury stock at $32, receiving cash.
Nov. 15. Declared semiannual dividends of $4.20 on the preferred stock and $0.15 on the common stock (before the stock dividend).
Nov. 15. A 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $34.
Dec. 31. Paid the cash dividends.
Dec. 31. Issued the certificates for the common stock dividend.