Question

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows Jan. 8 Spit the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the sple, there were 150,000 common shares outstanding Apr 30 Jul. Oct. 1 31 Declared semiannual dividends of $0.75 on 18,000 shares of preferred stock and $0.28 on the common stock payable on July 1. Paid the cash dividends Declared semiannual dividends of $0.75 on the preferred stock and 30.14 on the common stock (before the stock dividend). In addition, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at 552 Paid the cash dividends and issued the certificates for the common stock dividend. Dec. 31 Journalize the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

journalize the transactions

Answer 1

Journalize the transactions

Date	account title and explanation	debit ($)	credit ($)
January 8	No entry required
April 30	Cash dividends ( 18000×$0.75)+150000 shares×$0.28=13500+42000=55500	55500
	Cashe dividends payable		55500
	(To record the declaration of Cash dividends)
July 1	Cash dividends payable	55500
	Cash		55500
	( Record the payment of cash dividends)
October 31	stock dividends (150000shares×5%×$52= 390000	390000
	Common stock dividends distributable(7500shares× $40)		300000
	Paid in capital in excess of stated Value common stock(7500 shares×$52-$40)		90000
	(Record the declaration of stock dividends)
December 31	Cash dividends payable (18000 shares×$0.75)+(150000 shares×$0.14)=13500+21000=34500	34500
	Cash		34500
	(Record the payment of cash dividends)
December 31	common stock dividends distributable	300000
	Common stock		300000
	(To record the distribution of stock dividends )

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