Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows: Instructions: Journalize the transactions. If no entry is required, select

Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows:

Instructions:

Journalize the transactions. If no entry is required, select "No Entry Required" from the dropdown box and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 5. Split the common stock 4 for 1 and reduced the par from $160 to $40 per share. After the split, there were 540,000 common shares outstanding.

Date Account Debit Credit
Jan. 5. No Entry Required
No Entry Required

Mar. 10. Purchased 43,000 shares of the corporation's own common stock at $45, recording the stock at cost.

Date Account Debit Credit
Mar. 10. Treasury Stock
Cash

Apr. 30. Declared semiannual dividends of $4 on 45,000 shares of preferred stock and $0.25 on the common stock to stockholders of record on May 15, payable on June 15.

Date Account Debit Credit
Apr. 30. Cash Dividends
Cash Dividends Payable

June 15. Paid the cash dividends.

Date Account Debit Credit
June 15. Cash Dividends Payable
Cash

Aug. 20. Sold 31,000 shares of treasury stock at $51, receiving cash.

Date Account Debit Credit
Aug 20. Cash
Treasury Stock
Paid-In Capital from Sale of Treasury Stock

Oct. 15. Declared semiannual dividends of $4 on the preferred stock and $0.31 on the common stock (before the stock dividend).

Date Account Debit Credit
Oct. 15. Cash Dividends
Cash Dividends Payable

Oct. 15. A 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $53.

Date Account Debit Credit
Oct. 15. Stock Dividends
Stock Dividends Distributable
Paid-In Capital in Excess of Par-Common Stock

Dec. 19. Paid the cash dividends.

Date Account Debit Credit
Dec. 19. Cash Dividends Payable
Cash

Dec. 19. Issued the certificates for the common stock dividend.

Date Account Debit Credit
Dec. 31. Stock Dividends Distributable
Common Stock

Feedback

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: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Implementing Change With Clinical Audit

Authors: Richard W. Baker, Hilary M. Hearnshaw, Noelle Robertson

1st Edition

0471982571, 978-0471982579

More Books

Students also viewed these Accounting questions

Question

an element of formality in the workplace between different levels;

Answered: 1 week ago