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On January 1, 2017, Thomson Inc. had the following account balances in its shareholders' equity a...

On January 1, 2017, Thomson Inc. had the following account balances in its shareholders' equity accounts.

                       

                        Common stock, $1 par, 350,000 shares issued of

                        which 20,000 Shares being held as treasury stock           $350,000  

                        Paid-in capital excess of par, common                               500,000  

                        Preferred stock, $100 par, 10,000 shares outstanding     1,000,000  

                        Paid-in capital excess of par, preferred                              100,000  

                        Retained earnings                                                             2,000,000  

                        Treasury stock, at cost, 20,000 shares                                              60,000  

                                               

During 2017, Thomson Inc. had several transactions relating to common stock.

2/10

Declared a property dividend, payable in Welch company stock. The Welch stock had been purchased early in 2016 for $30,000 and was reported as an asset at a fair value of $35,000 on 12/31/16 balance sheet. The market value of Welch stock is $38,000 on 2/10/17.

3/17

Distributed the property dividend.

3/20

Reissued 5,000 shares of treasury stock at $5 per share.

4/17

Declared a 3 for 1 stock split on common stock effective 4/24.

7/18

Declared and distributed a 10% stock dividend on   outstanding common stock; market value per share, $7.                      

11/1

Declared a $0.5 per share cash dividend on the outstanding common shares.

11/25

Ex-dividend date for the cash dividend

11/29

Date of record for the cash dividend.    

12/20

Paid the cash dividend declared on 11/1.

                        Required:

Record the above transactions and events in the journal entry format.

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ReportAnswer #1

Date Account titles and explanation 2/10 Investments 2017 Debit Remarks Credit [$38,000 $35,000] $3,000 $3,000 Gain on Apprec7/18 $703,500 [1,005,000 shares x 10% x $7] [1,005,000 shares x 10% x $1] Balancing figure] (# of common shares outstanding i

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