Question
Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows: Jan.5.Split thecommon stock4 for 1 and reduced theparfrom $20 to
Selected transactions completed by ATV Discount Corporation during the current fiscal year are as follows:
Jan.5.Split thecommon stock4 for 1 and reduced theparfrom $20 to $5 per share. After the split, there were 4,000,000 common shares outstanding.Mar.10.Purchased 100,000 shares of the corporation's own common stock at $30, recording thestockat cost.Apr.30.Declared semiannualdividendsof $0.25 on 30,000 shares ofpreferred stockand $0.08 on the common stock tostockholdersof record on May 15, payable on June 15.June15.Paid thecash dividends.Aug.20.Sold 60,000 shares oftreasury stockat $40, receiving cash.Oct.15.Declared semiannual dividends of $0.25 on the preferred stock and $0.08 on the common stock (before the stock dividend). In addition, a 1% commonstock dividendwas declared on the common stock outstanding. The fair market value of the common stock is estimated at $35. The dividend date of record is November 15 payable on December 19.Dec.19.Paid the cash dividends and issued the certificates for the common stock dividend.
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