Porto Bay Corporation manufactures and distributes

leisure cloth
Porto Bay Corporation manufactures and distributes leisure clothing. Selected transactions
completed by Porto Bay during the current fiscal year are as follows:Jan. 10. Split the common
stock 4 for 1 and reduced the par from $100 to $25 per share. After the split, there were
500,000 common shares outstanding.Mar. 1. Declared semiannual dividends of $1.20 on
80,000 shares of preferred stock and $0.24 on the 500,000 shares of $25 par common stock to
stockholders of record on March 31, payable on April 30.Apr. 30. Paid the cash dividends.July
9.Purchased 75,000 shares of the corporation’s own common stock at $26, recording the stock
at cost.Aug. 29. Sold 40,000 shares of treasury stock at $32, receiving cash.Sept. 1.Declared
semiannual dividends of $1.20 on the preferred stock and $0.15 on the common stock (before
the stock dividend). In addition, a 1% common stock dividend was declared on the common
stock outstanding, to be capitalized at the fair market value of the common stock, which is
estimated at $30.Oct. 31. Paid the cash dividends and issued the certificates for the common
stock dividend.InstructionsJournalize the transactions.View Solution:
Porto Bay Corporation manufactures and distributes leisure cloth
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