60.1K

Verified Solution

Link Copied!

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, select $"$No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Question Content Area

Jan. $8.$ Split the common stock $2$ for $1$ and reduced the par from $$100$ to $$50$ per share. After the split, there were $300,000$ common shares outstanding.

DateAccountDebitCredit

Jan. $8$

No Entry Required

No Entry Required

Feedback Area

Feedback

Review the effect of stock splits on equity accounts.

Question Content Area

Apr. $30.$ Declared semiannual dividends of $$0\mathrm{.}60$ per share on $16,000$ shares of preferred stock and $$0\mathrm{.}22$ per share on the common stock payable on July $1.$

DateAccountDebitCredit

Apr. $30$

Cash Dividends

Cash Dividends Payable

Feedback Area

Feedback

When a company declares a dividend it becomes legally binding.

Question Content Area

July $1.$ Paid the cash dividends.

DateAccountDebitCredit

July $1$

Cash Dividends Payable

Cash

Feedback Area

Feedback

What are the stockholders' receiving from the corporation?

Question Content Area

Oct. $31.$ Declared semiannual dividends of $$0\mathrm{.}60$ per share on the preferred stock and $$0\mathrm{.}11$ per share 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 $$56.$

DateAccountDebitCredit

Oct. $31$

Oct. $31$

Feedback Area

Feedback

On the date of declaration of a cash dividend, it becomes legally binding. How do stock dividends affect stockholders' equity?

Question Content Area

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

DateAccountDebitCredit

Dec. $31$

Dec. $31$

Answer & Explanation Solved by verified expert

See Answer