LeeJin Corp. started a two-year period with 200,000 shares of $2 par common stock outstanding. During the

Question:

LeeJin Corp. started a two-year period with 200,000 shares of $2 par common stock outstanding. During the two years, LeeJin had the following capital stock transactions:

(a) Declared a 10% common stock dividend. The market value of the common stock was estimated at $8 per share.

(b) Declared a cash dividend of $0.20 per share on common stock.

(d) Declared a cash dividend of $0.20 per share on common stock.

(e) Declared a two-for-one stock split.

(f) Declared a cash dividend of $0.16 per share on common stock.

REQUIRED

1. Prepare general journal entries for each of the transactions. Identify each transaction by the appropriate letter. (Assume that any cash or share distributions have been completed and are a matter of record before the next transaction occurs.)

2. Compute the following:

(a) Number of shares of common stock outstanding after all the transactions have been completed.

(b) The par value per share of LeeJin’s common stock after all the transactions have been completed.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...