Question

Selected Dividend Transactions, Stock Split Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows: Journalize the transactions If no entry is required, type "No Entry Required and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 8. Split the common stock 3 for 1 and reduced the par from $54 to $18 per share. After the split, there were 114,000 common shares outstanding Jan. 8 Apr. 30. Declared semiannual dividends of $1 on 8,000 shares of preferred stock and $0.15 on the common stock payable on July 1 Apr. 30 July 1. Paid the cash dividende July 1

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Answer Journal Entries Date Account Title Debit ($) Credit ($) Jan-08 No entry As only increase in number of shares held by the stockholder Apr-30 Cash Dividends (1*8,000) + (0.15*114,000) Cash Dividends Payable 25,100 25,100 25,100 Jul-01 Cash Dividends Payable Cash 25,100 21,680 Oct-31 Cash Dividends (1*8,000) + (0.12*114,000) Cash Dividends Payable 21,680 72,960 Oct-31 Stock Dividends (114,000 * 2% * 32) Stock Dividends Distributable (114,000 * 2% * 18) Paid-in-Capital in Excess of Par - Common Stock (114,000 * 2%) * (32-18) 41,040 31,920 21,680 Dec-31 Cash Dividends Payable Cash 21,680 41,040 Dec-31 Stock Dividends Distributable Common Stock 41,040