Intermidiate Accounting II

Zinc Inc. had 20,000 shares of $5-par common stock outstanding. Journalize the following transactions assuming each one to be independent. a) Declared a cash dividend $50,000 on 5/1 and paid it on 6/30.

b) Issued 300 shares of $50-par preferred stock on 8/1 for $100 per share. Each share is convertible into 25 common shares. On 10/1 the

shareholders converted that stock into common stock.

c) Declared a 40% stock dividend on its common stock on 4/30 when the market price was $20 per share, and distributed it on 5/30. d) Effected a 3:1 stock split on outstanding common shares.

e) Declared a 10% stock dividend on its common stock on 6/30 when the market price was $20 per share, and distributed it on 7/30.

Q4: Zinc Inc. had 20,000 shares of $5-par common stock outstanding. Journalize the following transactions assuming each one to be independent. a) Declared a cash dividend $50,000 on 5/1 and paid it on 6/30 b) Issued 300 shares of $50-par preferred stock on 8/1 for $100 per share. Each share is convertible into 25 common shares. On 10/1 the shareholders converted that stock into common stock c) Declared a 40% stock dividend on its common stock on 4/30 when the market price was $20 per share, and distributed it on 5/30. d) Effected a 3:1 stock split on outstanding common shares e) Declared a 10% stock dividend on its common stock on 6/30 when the market price was $20 per share, and distributed it on 7/30