Question
Prepare journal entries for the following selected transactions completed during the current fiscal year: Jan. 3 The board of directors reduced the par of common
Prepare journal entries for the following selected transactions completed during the current fiscal year:
Jan. 3 | The board of directors reduced the par of common shares from $100 to $20. Also, the board increased the number of outstanding shares to 400,000. |
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22 | Declared a dividend of $2.00 per share on the outstanding shares of common stock. |
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Feb. 8 | Paid the dividend declared on January 22. |
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Sep. 1 | Declared a 5% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $30). |
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Oct. 1 | Issued the certificates for the common stock dividend declared on September 1. |
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