Mod 7

Date

Accounts and Explanation

Debit

Credit

Jan. 16

Retained Earnings

Dividends Payable—Preferred (5% × $100 × 900 shares)

Dividends Payable—Common ($0.30 × 80,000 shares)

Declared cash dividend.

Feb. 15

Dividends Payable—Preferred

Dividends Payable—Common

Cash

Paid cash dividend.

Jun. 10

No entry

Jul. 30

Retained Earnings ($3 per share × 160,000 shares (number of shares after split) × 0.50)

Common Stock Dividend Distributable ($3 per share × 160,000 shares × 0.50)

Declared a 50% stock dividend.

Aug. 15

Common Stock Dividend Distributable

Common Stock—$3 Par Value

Issued 50% stock dividend.

Oct. 26

Treasury Stock—Common

Cash

Purchased treasury stock.

Nov. 8

Cash

Treasury Stock—Common

Paid-In Capital from Treasury Stock Transactions

Sold treasury stock with cost of $13 per share.

Nov. 30

Cash

Paid-In Capital from Treasury Stock Transactions

Retained Earnings

Treasury Stock—Common

Sold treasury stock with cost of $13 per share.