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    This document summarizes stock transactions and dividend entries for a corporation over the course of a year. In February, the corporation purchased 40,000 shares of treasury stock for $1,120,000. In May and July, cash dividends were declared and paid to shareholders. In September, 30,000 shares of treasury stock were sold for $1,020,000. In October, a stock dividend was declared and issued to shareholders, increasing the number of outstanding shares. In December, remaining cash dividends were paid and the stock dividend distribution was closed to paid-in capital.

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    This document summarizes stock transactions and dividend entries for a corporation over the course of a year. In February, the corporation purchased 40,000 shares of treasury stock for $1,120,000. In May and July, cash dividends were declared and paid to shareholders. In September, 30,000 shares of treasury stock were sold for $1,020,000. In October, a stock dividend was declared and issued to shareholders, increasing the number of outstanding shares. In December, remaining cash dividends were paid and the stock dividend distribution was closed to paid-in capital.

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    © All Rights Reserved
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    2 views1 page

    CH 13-Pages-4

    Uploaded by

    rehan
    This document summarizes stock transactions and dividend entries for a corporation over the course of a year. In February, the corporation purchased 40,000 shares of treasury stock for $1,120,000. In May and July, cash dividends were declared and paid to shareholders. In September, 30,000 shares of treasury stock were sold for $1,020,000. In October, a stock dividend was declared and issued to shareholders, increasing the number of outstanding shares. In December, remaining cash dividends were paid and the stock dividend distribution was closed to paid-in capital.

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    CHAPTER 13 Corporations: Organization, Stock Transactions, and Dividends

    Prob. 13–5A
    Jan. 9 No entry required. The stockholders’ ledger would be revised to
    record the increased number of shares held by each stockholder
    and new par value.

    Feb. 28 Treasury Stock (40,000 shares × $28) 1,120,000


    Cash 1,120,000

    May 1 Cash Dividends {(75,000 shares × $0.80) + 199,200


    [(1,200,000 shares – 40,000 shares) × $0.12]}
    Cash Dividends Payable 199,200

    July 10 Cash Dividends Payable 199,200


    Cash 199,200

    Sept. 7 Cash (30,000 shares × $34) 1,020,000


    Treasury Stock (30,000 shares × $28) 840,000
    Paid-In Capital from Sale of Treasury
    Stock [30,000 shares × ($34 – $28)] 180,000

    Oct. 1 Cash Dividends {(75,000 shares × $0.80) – 202,800


    [(1,200,000 shares – 10,000 shares) × $0.12]}
    Cash Dividends Payable 202,800

    1 Stock Dividends (23,800 shares × $36) 856,800


    Stock Dividends Distributable 595,000
    (23,800 shares × $25)
    Paid-In Capital in Excess of Par—
    Common Stock (23,800 shares × $11) 261,800

    Dec. 1 Cash Dividends Payable 202,800


    Cash 202,800

    1 Stock Dividends Distributable 595,000


    Common Stock 595,000

    13-28
    © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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