Question

Jan.	3	The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 400,000.
	22	Declared a dividend of $1.75 per share on the outstanding shares of common stock.
Feb.	8	Paid the dividend declared on January 22.
Sept.	1	Declared a 5% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $30.)
Oct.	1	Issued the certificates for the common stock dividend declared on September 1.

Required:

Journalize the above selected transactions completed during the current fiscal year. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Supplies
151	Prepaid Insurance
181	Land
191	Buildings
192	Accumulated Depreciation-Building
193	Equipment
194	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
241	Salaries Payable
261	Mortgage Note Payable

EQUITY

311

Preferred Stock

312

Paid-In Capital in Excess of Par-Preferred Stock

321

Common Stock

322

Paid-In Capital in Excess of Par-Common Stock

323

Paid-In Capital in Excess of Stated Value-Common Stock

331

Treasury Stock

332

Paid-In Capital from Sale of Treasury Stock

336

Stock Dividends Distributable

340

Retained Earnings

351

Cash Dividends

352

Stock Dividends

Journalize each of the selected transactions completed during the current fiscal year. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Rent Expense
534	Insurance Expense
535	Supplies Expense
536	Organizational Expenses
561	Depreciation Expense-Building
562	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest Expense

Answer 1

Date	account titles & Explanations					Debit	Credit
3-Jan	No Entry
22-Jan	Cash Dividend					700000
	Dividends payable						700000
	(400,000*1.75)
8-Feb	Dividends payable					700000
	cash						700000
1-Sep	Stock dividends		(20000*30)			600000
	Stock dividends distributable			(20,000*20)			400000
	paid in capital in excess of par-common stock						200000
	( shares 400,000*5%=20000 shares)
1-Oct	Stock dividend distributable					400,000
	common Stock						400,000