Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:

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 150,000 common shares outstanding.

Apr. 30. Declared semiannual dividends of $0.75 on 18,000 shares of preferred stock and $0.28 on the common stock payable on July 1.

July 1. Paid the cash dividends.

Oct. 31. Declared semiannual dividends of $0.75 on the preferred stock and $0.14 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 $52.

Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend.

Journalize the transactions.


Answer:




















Jan. 8 No entry required. The stockholders’ ledger would be revised to
record the increased number of shares held by each stockholder.
Apr. 30 Cash Dividends {[(18,000 shares × $0.75) + 55,500
(150,000 shares × $0.28)] = $13,500 + $42,000 = $55,500}
Cash Dividends Payable 55,500
July 1 Cash Dividends Payable 55,500
Cash 55,500
Oct. 31 Cash Dividends {[(18,000 shares × $0.75) + 34,500
(150,000 shares × $0.14)] = $13,500 + $21,000 = $34,500}
Cash Dividends Payable 34,500
31 Stock Dividends [(150,000 shares × 5% × $52) = $390,000] 390,000
Stock Dividends Distributable (7,500 shares × $40) 300,000
Paid-In Capital in Excess of Par—Common Stock 90,000
[7,500 shares × ($52 – $40)]
Dec. 31 Cash Dividends Payable 34,500
Cash 34,500
31 Stock Dividends Distributable 300,000
Common Stock 300,000