Carlyon Company listed the following items in its December 31, 2015, financial statements:

Investment in Man Company bonds $25,000

Dividends payable: preferred 4,000

Dividends payable: common 40,000

Preferred stock, 8%, $100 par 100,000

Common stock, $10 par 400,000

Additional paid-in capital on preferred stock 20,000

Additional paid-in capital on common stock 210,000

Retained earnings 270,000

During 2016, the following transactions occurred:

Feb.2 Paid the semiannual dividends declared on December 15, 2015.

Mar.5 Declared a property dividend, payable to common shareholders on April 5 in Man Company bonds being held to maturity. The bonds (which have a book value of $25,000) have a current market value of $31,000.

Apr. 5 Paid the property dividend.July6Declared a $4 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on common stock, to be paid on August 17.

Aug. 17 Paid the cash dividends.

Oct. 15 Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share.

Dec. 3 Issued the stock dividend.

28 Declared a $4 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2017.Required:

Next LevelPrepare journal entries to record the preceding transactions.

CHART OF ACCOUNTS

Carlyon Company

General Ledger

ASSETS

111 Cash

121 Accounts Receivable

141 Inventory

152 Prepaid Insurance

181 Equipment

189 Accumulated Depreciation

191 Investment in Bonds

LIABILITIES

211 Accounts Payable

231 Salaries Payable

250 Unearned Revenue

261 Income Taxes Payable

272 Property Dividends Payable

273 Dividends Payable: Preferred

274 Dividends Payable: Common

EQUITY

311 Common Stock

315 Common Stock to be Distributed

324 Additional Paid-in Capital from Stock Dividend

331 Retained Earnings

REVENUE

411 Sales Revenue

434 Gain on Disposal of Investment

EXPENSES

500 Cost of Goods Sold

511 Insurance Expense

512 Utilities Expense

521 Salaries Expense

532 Bad Debt Expense

540 Interest Expense

541 Depreciation Expense

559 Miscellaneous Expenses

910 Income Tax Expense