Mod 7
Requirement 1
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Date |
Accounts and Explanation |
Debit |
Credit |
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Jan. 16 |
Retained Earnings |
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Dividends Payable—Preferred (5% × $100 × 900 shares) |
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Dividends Payable—Common ($0.30 × 80,000 shares) |
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Declared cash dividend. |
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Feb. 15 |
Dividends Payable—Preferred |
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Dividends Payable—Common |
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Cash |
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Paid cash dividend. |
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Jun. 10 |
No entry |
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Jul. 30 |
Retained Earnings ($3 per share × 160,000 shares (number of shares after split) × 0.50) |
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Common Stock Dividend Distributable ($3 per share × 160,000 shares × 0.50) |
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Declared a 50% stock dividend. |
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Aug. 15 |
Common Stock Dividend Distributable |
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Common Stock—$3 Par Value |
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Issued 50% stock dividend. |
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Oct. 26 |
Treasury Stock—Common |
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Cash |
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Purchased treasury stock. |
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Nov. 8 |
Cash |
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Treasury Stock—Common |
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Paid-In Capital from Treasury Stock Transactions |
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Sold treasury stock with cost of $13 per share. |
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Nov. 30 |
Cash |
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Paid-In Capital from Treasury Stock Transactions |
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Retained Earnings |
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Treasury Stock—Common |
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Sold treasury stock with cost of $13 per share. |
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