Presented below is information related to Alligator Corporation for 2019.

 1.            On March 1, Alligator Corporation issued 95,000 shares (authorized to issue 1,000,000 shares of $10 par value, Issued 100,000 shares till February, 2019) of common stock at $30 per share.

2.            A dividend is declared on May 1, 2010, and paid on May 27, 2019, in equity held as an investment. The equity have a book value of $150,000 and a fair value of $190,000.

3.            On June 1, Alligator Corporation replaced one of its’ used machines costed $200,000 with an accumulated depreciation of $110,000 with Labor company and received additional $27,000 cash. Fair value of Alligator’s machine at the time of exchange was $105,000. The cost, accumulated depreciation and fair value of Labor Company’s machine at the time of exchange were $125,000, $45,000 and $78,000 respectively. The exchange lacks commercial substance for both the parties.

4.            On September 4, Alligator Corporation sold the 1,000 treasury shares that they had purchased on August 10 at $22 per share. The purchase price of the shares was $25 per share. There is no previous balance in the paid-in-capital from treasury stock account (journalize both purchase and resale).

5.            On September 20, Alligator Corporation declared & issued a 20% stock dividend on the outstanding common stock when the stock is selling for $50 per share.

6.            On December 31, a 3-for-1 stock split is declared and issued.

7.            On December 31, Alligator Corporation declared a $0.90 per share liquidating dividend on the common stock outstanding.

Instructions:

Journalize the following transactions from the perspective of Alligator Corporation.              (28 marks)