Summerborn Manufacturing, Co., completed the following transactions during 2012
Jan 16 Declared a cash dividend on the 5%, $100 par preferred stock (900 shares outstanding). Declared a $0.30 per share dividend on the 80,000 shares of common stock outstanding. The date of record is January 31, and the payment due date is February 15.
Feb 15 Paid the cash dividends.
Jun 10 Split common stock 2 for 1. Before the split, Summerborn had 80,000 shares of $6 par common stock outstanding.
Jul 30 Distributed a 50% stock dividend on the common stock. The market value of the common stock was $9 per share.
Oct 26 Purchased 1,000 shares of treasury stock at $13 per share.
Nov 8 Sold 500 shares of treasury stock for $15 per share.
Nov 30 Sold 300 shares of treasury stock for $8 per share.
1. Record the transactions in Summerborn's general journal.
Solution is provided in a separate excel file attached.It also contains complete working for stock split and stock dividend along with explanatory notes on conceptual aspects as follows.
1. stock split: It will not change the general ledger account balances and therefore will not change the dollar amounts reported in the ...
The expert examines journalizing stockholders' equity transactions.