Next level prepare journal entries to record the preceding

Question

Assignment

Instructions:

Carlyon Company listed the following items in its December 31, 2015, financial statements:

Investment in Man Company bonds	$25,000
Dividends payable: preferred	4,000
Dividends payable: common	40,000
Preferred stock, 8%, $100 par	100,000
Common stock, $10 par	400,000
Additional paid-in capital on preferred stock	20,000
Additional paid-in capital on common stock	210,000
Retained earnings	270,000

During 2016, the following transactions occurred:

Feb.	2	Paid the semiannual dividends declared on December 15, 2015.
Mar.	5	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.
Apr.	5	Paid the property dividend.
July	6	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.
Aug.	17	Paid the cash dividends.
Oct.	15	Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share.
Dec.	3	Issued the stock dividend.
	28	Declared a $4 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2017.

Required:

Next Level Prepare journal entries to record the preceding transactions.

CHART OF ACCOUNTS
Carlyon Company
General Ledger
ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation 191 Investment in Bonds LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable 272 Property Dividends Payable 273 Dividends Payable: Preferred 274 Dividends Payable: Common EQUITY 311 Common Stock 315 Common Stock to be Distributed 324 Additional Paid-in Capital from Stock Dividend 331 Retained Earnings

Prepare journal entries to record the 2016 transactions.