Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2018. Thomson Inc. had the following account balances in its shareholders' equity accounts Common stock, SI par. 250,000 shares issued of which

image text in transcribed
On January 1, 2018. Thomson Inc. had the following account balances in its shareholders' equity accounts Common stock, SI par. 250,000 shares issued of which 5,000 Shares being held as treasury stock $250.000 Paid-in capital excess of par, common 500,000 Preferred stock, $100 par. 10,000 shares outstanding 1,000,000 Paid-in capital excess of par, preferred 100,000 Retained earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 During 2018, Thomson Inc. had several transactions relating to common stock. 1/15 Declared a property dividend payable in bonds of Goodings Corp. being held to maturity. The book value of the bond is $28,000 but the current market value is $34.000 2/17 Distributed the property dividend 3/20 Reissued 1,000 shares of treasury stock at $7 per share. 4/17 Declared a 2 for 1 stock split on common stock effective 4/24 7/18 Declared and distributed a 4% stock dividend on outstanding common stock, market value per share. $7 Declared a ten cents per share cash dividend on the outstanding common shares 11/26 Ex-dividend date for the cash dividend. 11/27 Date of record for the cash dividend. 12/15 Paid the cash dividend declared on 11/1. 11/1 Required: Record the above transactions and events in the journal entry format

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions