Macondo, Inc. is a wholesaler located in Aguadilla. During its current fiscal year, ended December 31,...

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Accounting

Macondo, Inc. is a wholesaler located in Aguadilla.During its current fiscal year, ended December 31, 2019, MacondoInc. completed the following selected transactions:
Feb. 3 Purchased 2,500 shares of its own common stock at$26, recording the stock at cost. (Prior to the purchase, therewere 40,000 shares of $20 par common stockoutstanding.
May 1 Declared a semiannual dividend of $1 on the 10,000shares of preferred stock a $.30 dividend on the common stock tostockholders of record on May 31, payable on June 15.
June 15 Paid the cash dividends.
Sept. 23 Sold 1,000 shares of treasury stock at $28,receiving cash.
Nov. 1 Declared semiannual dividends of $1 on thepreferred and $.30 declared on the common stock, In addition, a 5%common stock dividend was declared on the common stock outstanding,to be capitalized at the fair market value of the common stock,which is estimate at $30.
Dec. 1 Paid the cash dividends and issued thecertificates for the common stock dividend.
Instructions: Journalize the transactions.

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Journal Entries Date Account title and Explanation Debit Credit Feb 3 Treasury stock 2500 x 26 65000 Cash 65000 To record purchase of own shares May 1 Retained earnings 21250 Dividends payablePreferred 10000 x 1 See Answer

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