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14 Paid Wages of $100.00 Cash; Social Security Withheld 6.20% Medicare The Ruff and Ready Corporation stockholders' equity consisted of the following on January I,

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14 Paid Wages of $100.00 Cash; Social Security Withheld 6.20% Medicare The Ruff and Ready Corporation stockholders' equity consisted of the following on January I, 2016. Note A: Preferred dividends are in arrears for 2015 Instructions: Prepare the appropriate joumal entries for the following transactions in 2016. You may omit journal entry explanations but you should show computations. 2/18/15 The Board of Directors declared a cash dividend on preferred and common stock totaling $700,000, payable on March 15, to stockholders of record on February 28. (Record dividends payable on preferred and common stock in separate accounts) 3/15/15 Paid the cash dividend to preferred and common stockholders. 5/20/15 Declared a 10% stock dividend on the common stock, payable on June 15 , to stockholders of record on May 31. The market value of Ruff and Ready common stock was $45 per share. 6/15/15 Distributed stock dividends to common stockholders. 7/10/15 Purchased 50.000 shares of Ruff and Ready's common stock for $42 per share to be held in the company's treasury. 8/13/15 Sold 12.000 shares of treasury stock for $46 per share. 14 Paid Wages of $100.00 Cash; Social Security Withheld 6.20% Medicare The Ruff and Ready Corporation stockholders' equity consisted of the following on January I, 2016. Note A: Preferred dividends are in arrears for 2015 Instructions: Prepare the appropriate joumal entries for the following transactions in 2016. You may omit journal entry explanations but you should show computations. 2/18/15 The Board of Directors declared a cash dividend on preferred and common stock totaling $700,000, payable on March 15, to stockholders of record on February 28. (Record dividends payable on preferred and common stock in separate accounts) 3/15/15 Paid the cash dividend to preferred and common stockholders. 5/20/15 Declared a 10% stock dividend on the common stock, payable on June 15 , to stockholders of record on May 31. The market value of Ruff and Ready common stock was $45 per share. 6/15/15 Distributed stock dividends to common stockholders. 7/10/15 Purchased 50.000 shares of Ruff and Ready's common stock for $42 per share to be held in the company's treasury. 8/13/15 Sold 12.000 shares of treasury stock for $46 per share

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