IV. (30 points)

Prepare journal entries for ABC Co.s following events.

05/12/08 Received charter authorizing ABC Co. to issue 20,000 shares of common stock at a par value of $2 per share.

06/03/08 Issued 8,000 shares of stock, receiving $40,000.

06/04/08 Paid the law firm of Lo, Ball and Hyde for their services to help organize the company by sending them two thousand shares of stock.

11/15/08 Declared a cash dividend of $2 per share, payable on 01/15/09, to holders of record as of 12/15/08.

12/15/08 Make the appropriate entry.

12/31/08 Make any necessary adjusting entry.

01/15/09 Make the appropriate entry.

06/12/09 Declared a ten percent (10%) stock dividend, payable on 7/15/09 (ignore the date of record for this event). The market value of the stock is $15 per share.

07/15/09 Make the appropriate entry.

08/15/09 Declared a two-for-one stock split. The market value of the stock is $15 per share.

09/15/09 Declared and paid a cash dividend of $2 per share (pretend this happens all in one day).

10/01/09 Purchased 1,000 shares of treasury stock for a total price of $30,000.

10/15/09 Declared and paid a cash dividend of $2 per share.

11/15/09 Reissued 400 shares of treasury stock at $32 each.

12/15/09 Reissued the remaining treasury stock at $10 per share.