Question

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows: Jan. 8 Split the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the split, there were 157,000 common shares outstanding. Apr. 30 Declared semiannual dividends of $0.65 on 19,000 shares of preferred stock and $0.24 on the common stock payable on July 1. Jul. 1 Paid the cash dividends. Oct. 31 Declared semiannual dividends of $0.65 on the preferred stock and $0.11 on the common stock (before the stock dividend). In addition, a 3% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $52. Dec. 31 Paid the cash dividends and issued the certificates for the common stock dividend. 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.

CHART OF ACCOUNTS
Canyon Ferry Boating Corporation
General Ledger
ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Stock Dividends Distributable 351 Cash Dividends 352 Stock Dividends 390 Income Summary	REVENUE 410 Sales 610 Interest Revenue

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.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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Answer 1

Solution:

Journal Entries - Canyon Ferry Boating Corporation
Event	Date	Particulars	Debit	Credit
1	8-Jan	No Journal Entry required
2	30-Apr	Cash dividends Dr [(19000*$0.65) + (157000*$0.24)]	$50,030.00
		To Cash dividend payable		$50,030.00
		(To record dividend declared)
3	1-Jul	Cash dividend payable Dr	$50,030.00
		To Cash		$50,030.00
		(To record payment of dividend)
4	31-Oct	Cash dividends Dr [(19000*$0.65) + (157000*$0.11)]	$29,620.00
		To Cash dividend payable		$29,620.00
		(To record cash dividend declared)
5	31-Oct	Stock dividends Dr (157000*3%*$52)	$244,920.00
		To Stock Dividends Distributable		$188,400.00
		To Paid-In Capital in Excess of Par-Common Stock		$56,520.00
		(To record stock dividend declared)
6	31-Dec	Cash dividend payable Dr	$29,620.00
		To Cash		$29,620.00
		(To record payment of dividend)
7	31-Dec	Stock Dividends Distributable Dr	$188,400.00
		To Common stock		$188,400.00
		(To record distribution of stock dividend)