90.2K

Verified Solution

Link Copied!

Journalize the transactions If no entry is required, type "No Entry Required" and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 8. Split the common stock 2 for 1 and reduced the par from $40 to $20 per share. After the split, there were 81,000 common shares outstanding Jan. 8 Apr. 30. Declared semiannual dividends of $1.5 on 6,000 shares of preferred stock and $0.14 on the common stock payable on July 1. Apr. 30 July 1. Paid the cash dividends. July 1 Oct. 31. Declared semiannual dividends of $1.5 on the preferred stock and $0.11 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36. Cash Dividends Stock dividends HII Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend. Payment Issuance Issuing Stock Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 75,000 shares of 1% preferred stock, $55 par and 550,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. July. 1. Issued 135,000 shares of common stock at par for cash. July 1 Cash July 1 Issued 350 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. July 1 Aug. 7. Issued 23,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $42,000, $229,000, and $51,000, respectively. For a compound transaction, if an amount box does not require an entry, leave it blank. Aug. 7 Sept. 20. Issued 28,000 shares of preferred stock at $69 for cash. For a compound transaction, if an amount box does not require an entry, leave it blank. Sept. 20

Answer & Explanation Solved by verified expert

See Answer