Question

Selected Dividend Transactions, Stock Split

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:

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 3 for 1 and reduced the par from $72 to $24 per share. After the split, there were 72,000 common shares outstanding.

Jan. 8

Apr. 30. Declared semiannual dividends of $1.6 on 5,000 shares of preferred stock and $0.12 on the common stock payable on July 1.

Apr. 30

July 1. Paid the cash dividends.

July 1

Oct. 31. Declared semiannual dividends of $1.6 on the preferred stock and $0.1 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $43.

Cash Dividends
Stock dividends

Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend.

Payment
Issuance

Answer 1

Journal entries
Date	Account Titles	Debit	Credit
Jan.8	No Entry Required
Apr.30	Retained Earnings	$16,640
	Dividend Payable		$16,640
July.1	Dividend Payable	$16,640
	Cash		$16,640
Oct.31	Retained Earnings	$15,200
	Dividend Payable		$15,200
Oct.31	Retained Earnings	$30,960
	Stock Dividends Distributable		$30,960
Dec.31	Dividend Payable	$15,200
	Cash		$15,200
Dec.31	Stock Dividends Distributable	$30,960
	Common stock		$17,280
	Additional Paid in Capital		$13,680