HANDOUT 11-1 STOCK TRANSACTIONS Prepare the journal entries required to record the following transactions and then post them to the related T-accounts: Strait Corp. sold 10,000 shares of $1 par value stock for $25 per share on May 1. On December 1, Strait Corp. repurchased 1,000 shares of its stock on the market when it was trading for $16 per share. On December 15, Strait Corp. sold 500 of the treasury shares for $30 each. content On December 30, Strait Corp. sold 500 of the treasury shares for $15 each. ASH DIVIDENDS Jones Corp. has 200,000 shares of stock authorized, 120,000 shares issued, and 100,000 shares outstanding. On August 1, Jones' Board of Directors declared a cash dividend of $0.50 per share, with a record date of September 1. The dividend will be paid on October 1. Prepare the journal entries required to record the transactions described above, as needed, and then post them to the related T-accounts: Aug. 1 Sept. 1 Oct. 1 Oct. 1 PREFERRED DIVIDENDS On January 1, Garden State issued 10,000 shares of $10 par preferred stock for $19 per share. Prepare the journal entry required to record this transaction and post it to the appropriate T-accounts: Jan. 1 The stock pays a cumulative annual dividend of 7% of par value. What is the total amount of the annual dividends that would be paid, if declared, to preferred stockholders? Find & Select Complete the following table to explain how dividends would be allocated between preferred and common stockholders: Year Total Dividend To Preferred Stockholders To Common Stockholders Current $100,000 Year 2 5,000 Year 3 10,000 Year 4 None Years 20.000 K DIVIDENDS AND STOCK SPLITS Jennings Corp. has 1,000,000 shares of $1 par value stock authorized, 200,000 shares issued, and 150,000 shares outstanding. On March 31, Jones' Board of Directors declared a 10% stock dividend at a time that the stock carried a market value of $30. Prepare the journal entry required to record this transaction and then post it to the related T-accounts: 31-Mar Compute the number of shares outstanding after the March 31 stock dividend. Jennings Corp. announced a 100% stock dividend on June 30. Prepare the journal entry required to record this transaction and then post it to the related T-accounts: 30-Jun Find & Select Compute the number of shares outstanding after the June 30 stock dividend. Jennings Corp. announced a 2-for-l stock split on September 30. Prepare the journal entry required to record the transaction described above and then post it to the related T-accounts: 30-Sep
