Accounting for various stockholders’ equity transactions

(Learning Objectives 4, 5, & 6) 20–25 min.

Littleton Corporation completed the following selected transactions during 2014:

Jan 6 Jan 20 Mar 21 Apr 18 Jun 18 Dec 22 Declared a cash dividend on the 12,000 shares of $2.25, no-par preferred stock outstanding. Declared a $0.10 per share dividend on the 9,000 shares of common stock outstanding. The date of record is January 17, and the payment date is January 20.

Paid the cash dividends.

Split common stock 2-for-1 by calling in the 9,000 shares of $10 par common stock and issuing new stock in its place.

Declared and distributed a 15% stock dividend on the common stock. The market value of the common stock was $34 per share.

Purchased 1,000 shares of treasury common stock at $30 per share.

Sold 500 shares of treasury common stock for $33 per share.

Requirement 1. Record the transactions in the journal.

AppendixLO1