3. Entries for Selected Corporate Transactions

West Yellowstone Outfitters Corporation manufactures and distributes leisure clothing. Selected transactions completed by West Yellowstone Outfitters during the current fiscal year are as follows:

Jan. 15.	Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 800,000 common shares outstanding.
Mar. 1.	Declared semiannual dividends of $0.25 on 100,000 shares of preferred stock and $0.07 on the 800,000 shares of $30 par common stock to stockholders of record on March 31, payable on April 30.
Apr. 30.	Paid the cash dividends.
May 31.	Purchased 60,000 shares of the corporation's own common stock at $32, recording the stock at cost.
Aug. 17.	Sold 40,000 shares of treasury stock at $38, receiving cash.
Sept. 1.	Declared semiannual dividends of $0.25 on the preferred stock and $0.09 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $40. The dividend date of record is September 30, payable on October 31.
Oct. 31.	Paid the cash dividends and issued the certificates for the common stock dividend.

Required:

Journalize the transactions. If no entry is required, select "No Entry Required" from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 15. Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 800,000 common shares outstanding.

Date	Account	Debit	Credit
Jan. 15

Mar. 1. Declared semiannual dividends of $0.25 on 100,000 shares of preferred stock and $0.07 on the 800,000 shares of $30 par common stock to stockholders of record on March 31, payable on April 30.

Date	Account	Debit	Credit
Mar. 1

Apr. 30. Paid the cash dividends.

Date	Account	Debit	Credit
Apr. 30:

May 31. Purchased 60,000 shares of the corporation's own common stock at $32, recording the stock at cost.

Date	Account	Debit	Credit
May 31

Aug. 17. Sold 40,000 shares of treasury stock at $38, receiving cash.

Date	Account	Debit	Credit
Aug. 17

Sept. 1. Declared semiannual dividends of $0.25 on the preferred stock and $0.09 on the common stock (before the stock dividend).

Date	Account	Debit	Credit
Sept. 1

Sept. 1. A 1% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $40. The dividend date of record is September 30, payable on October 31.

Date	Account	Debit	Credit
Sept. 1

Oct. 31. Paid the cash dividends.

Date	Account	Debit	Credit
Oct. 31

Oct. 31. Issued the certificates for the common stock dividend.

Date	Account	Debit	Credit
Oct. 31

Issuing Stock Work Place Products Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $40 par and 750,000 shares of $7 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. July 1. Issued 400,000 shares of common stock at par for cash. July. 1 July. 1. Issued 1,000 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. July. 1 Aug. 7. Issued 80,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $250,000, $400,000, and $70,000, respectively. For a compound transaction, if an amount box does not require an entry, leave it blank. Aug. 7. July. 1. Issued 1,000 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. July. 1 Aug. 7. Issued 80,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $250,000, $400,000, and $70,000, respectively. For a compound transaction, if an amount box does not require an entry, leave it blank. Aug. 7. Sept. 20. Issued 25,000 shares of preferred stock at $44 for cash. For a compound transaction, if an amount box does not require an entry, leave it blank. Sept. 20. Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water Inc. reacquired 23,500 shares of its common stock at $75 per share. On September 6, Biscayne Bay Water Inc. sold 14,000 of the reacquired shares at $81 per share. The remaining 9,500 shares were sold at $72 per share on November 30. a. Journalize the transactions of May 14, September 6, and November 30. For a compound transaction, if an amount box does not require an entry, leave it blank. May 14 Sept. 6 - III III I Nov. 30 b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? c. Where will the balance in Paid-In Capital from Sale of Treasury Stock be reported on the balance sheet? d. For what reasons might Biscayne Bay Water Inc. have purchased the treasury stock? Caterpillar Inc. and Deere & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years: Caterpillar Deere Year 2 Year 1 Year 2 Year 1 Net income $2,102 $3,695 $1,940 $3,162 Average number of common shares 594 599 334 363 outstanding a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places. Year 2 Year 1 Caterpillar $ per share $ per share Deere per share $ per share b. Evaluate the relative profitability of the two companies. earnings per share for Year 1 and Year 2 are higher than . However, from Year 1 to Year 2, the earnings per share for both companies The slowing world economy contributed to the from Year 1 to Year 2. Overall appears to be the more profitable company