Question
I need help with this homework problem relating to journal entries of investments! On January 1, 2015, Thomson Inc. had the following account balances in
I need help with this homework problem relating to journal entries of investments!
On January 1, 2015, Thomson Inc. had the following account balances in its shareholders' equity accounts.
Common stock, $1 par, 250,000 shares issued of
which 3,000 Shares being held as treasury stock$250,000
Paid-in capital excess of par, common500,000
Preferred stock, $100 par, 10,000 shares outstanding1,000,000
Paid-in capital excess of par, preferred 100,000
Retained earnings2,000,000
Treasury stock, at cost, 3,000 shares 15,000
During 2015, Thomson Inc. had several transactions relating to common stock.
3/20Reissued 2,000 shares of treasury stock at $7 per share.
4/17Declared a 2 for 1 stock split on common stock effective 4/24.
7/18Declared and distributed a 5% stock dividend on outstanding common stock; market value per share, $8.
11/1 Declared a ten cent per share cash dividend on the outstanding common shares.
11/25Ex-dividend date for the cash dividend.
11/29Date of record for the cash dividend.
12/20Paid the cash dividend declared on 11/1.
Required:
Record the above transactions and events in the journal entry format.
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