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Prepare the journal entry to issue the stock below.

Authorized

Issued

Outstanding

Preferred Stock 8%, $100

1000

1000

1000

Common Stock, $1 Par

100000

75000

75000

April 2015

The company purchased 5000 shares of its own shares for 10 onthe open market. Prepare this journal entry.

July 2015

The company declared a 10% stock dividend and the market pricewas $15.

September 2015

The company sells all its treasury stock for 12.50. Prepare thisjournal entry.

December 2015

Company declared a 50,000 dividend. Prepare the journal entry.How much per share?

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Deanna Hettinger
Deanna HettingerLv2
28 Sep 2019

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Problem 4
Part A:

During 2015, the following transactions occurred at West MarIndustries.
March 20, 2015, the Company Purchased 12,000 shares of its owncommon stock at $20.00 per share.
October 5, 2015 the Company sold 3,000 of the shares it purchasedon March 20, 2015 for $25.00 per share.

Please prepare the journal entries for the abovetransactions.


Part B:
The Teflon Company’s Board of Director declared a dividend on theCompany’s 1,250,000 issued and outstanding common shares. The Boardof Directors authorized the dividend in accordance with thefollowing schedule.

December 10, 2015 declared a dividend of $.50 per share ofcommon stock
December 15, 2015 date of record for shareholders
December 28, 2015 payment date

Please prepare appropriate journal entries, if any, on dateslisted.


Part C:
The Maxim Corporation has 1,000,000 shares of common stockauthorized and 300,000 issued and outstanding. The par value of thestock is $1.00 per share. The Board of Directios has declared a 30%stock dividend. Please prepare the appropriate journal entry torecord stock dividend. The market value of the stock at the time ofthe stock dividend is $4.00 per share.

On January 2, 2015, ABC Co. was authorized to issue 300,000shares of common stock, par value $10 per share and 50,000 sharesof 6% Preferred stock, par value $100 per share. Record thefollowing events for 2015:

1. Issued 100,000 shares of common stock at $15 per share.

Debit Credit

2. Issued 11,000 shares of preferred stock at $105 pershare.

Debit Credit

3. Reacquired 2,000 shares of common stock at $18 per share.

Debit Credit

4. Reissued 500 shares of treasury stock for $10,000.

Debit Credit

5. Declared the annual cash dividend on the preferred stock anda $1 per share dividend on the

common stock. This will be paid the followingyear.

Debit Credit

The equity sections from Atticus Group’s 2015 and 2016 year-endbalance sheets follow. Stockholders’ Equity (December 31, 2015)Common stock—$5 par value, 50,000 shares authorized, 35,000 sharesissued and outstanding $ 175,000 Paid-in capital in excess of parvalue, common stock 135,000 Retained earnings 320,000 Totalstockholders’ equity $ 630,000 Stockholders’ Equity (December 31,2016) Common stock—$5 par value, 50,000 shares authorized, 41,200shares issued, 4,000 shares in treasury $ 206,000 Paid-in capitalin excess of par value, common stock 178,400 Retained earnings($50,000 restricted by treasury stock) 420,000 804,400 Less cost oftreasury stock (50,000 ) Total stockholders’ equity $ 754,400 Thefollowing transactions and events affected its equity during year2016. Jan. 5 Declared a $0.60 per share cash dividend, date ofrecord January 10. Mar. 20 Purchased treasury stock for cash. Apr.5 Declared a $0.60 per share cash dividend, date of record April10. July 5 Declared a $0.60 per share cash dividend, date of recordJuly 10. July 31 Declared a 20% stock dividend when the stock’smarket value is $12 per share. Aug. 14 Issued the stock dividendthat was declared on July 31. Oct. 5 Declared a $0.60 per sharecash dividend, date of record October 10. 6.value: 10.00pointsRequired information Required: 1. How many common shares areoutstanding on each cash dividend date+ Jan5,April 5,July 5,Oct5What is the total dollar amount for each of the four cashdividends? What is the amount of the capitalization of retainedearnings for the stock dividend? What is the per share cost of thetreasury stock purchased? How much net income did the company earnduring year 2016?

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