Question

Carp Corporation is authorized to issue 2,000,000 shares of $1 par value common stock. During 2018, the company has the stock transactions listed below. Journalize the transactions for Carp Corporation in spaces provided below.

Jan. 15 Issued 700,000 shares of stock at $7 per share.

Sept. 5 Purchased 20,000 shares of common stock for the treasury at $8 per share.

Dec. 6 Declared a $0.50 per share dividend to the remaining stockholders of record on December 20, payable January 3, 2019.

Dec. 12 Assuming that there are 680,000 shares outstanding, a par value per share of $1 and a current price per share of $7, Carp Corporation declares and pays a Common stock dividend of 10% on December 12

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Jan 15	Cash	4,900,000
	Common Stock		700,000
	Paid-in Capital in Excess of Par Value		4,200,000
Sep 5	Treasury Stock	160,000
	Cash		160,000
Dec 6	Cash Dividends	340,000
	Dividends Payable		340,000
	(700,000 - 20,000) x $0.50
Dec 12	Stock Dividends	476,000
	Common Stock		68,000
	Paid-in Capital in Excess of Par Value		408,000
	(680,000 x 10%) x $7