Question

	INSTRUCTIONS: Record the following transactions for Waylon Corp.
10-Sep	Issued 2,000 shares of its $2 stated value common stock for $30 per share.
10-Oct	Issued 1 ,000 shares of its $2 stated value common stock for equipment advertised for sale
	at $38,000. Waylon's stock is actively traded on this date at a market price of
	$30 per share.
10-Nov	Issued 3,000 shares of $10 par value preferred stock at $40 per share.for cash

1-Sep	The board of directors of Granger Corp. declared a $2.00 per share cash dividend.
	Granger Corp. has 20,000 shares of its $1 par value common stock outstanding.
20-Sep	Date of record
30-Sep	Payment date
	INSTRUCTIONS:Prepare the necessary journal entries.

1-Oct	Jackson, Inc. declared a 10% stock dividend. The market price per share was $20.
	The company had 40,000 shares of its $2 par value common stock outstanding.
20-Oct	Date of record.
31-Oct	The stock dividend was issued.
	Prepare the necessary journal entries for the declaration and issuance of the stock dividend.

Answer 1

	Waylon Corporation
	Journal Entries
Date	Account Title	Debit ($)	Credit ($)
10 sept.	Cash ( 2000 * 30 )	60000
	Common stock ( 2000 * 2 )		4000
	PIC in excess of stated value		56000
10 oct.	Equipment	38000
	Common stock ( 1000 * 2 )		2000
	PIC in excess of stated value		36000
10 nov.	Cash ( 3000 * 40 )	120000
	Preferred stock ( 3000 * 10 )		30000
	PIC in excess of par value - PS		90000
	Granger Corporation
	Journal Entries
Date	Account Title	Debit ($)	Credit ($)
1 sept.	Cash dividend ( 20000 * 2 )	40000
	Dividend payable		40000
20 sept.	NO entry
30 sept.	Dividend payable	40000
	Cash		40000
	Jackson Inc.
	Journal Entries
Date	Account Title	Debit ($)	Credit ($)
1 oct.	Stock dividend ( 40000 * 10 % * 20 )	80000
	Common stock dividend distributable ( 4000 * 2 )		8000
	PIC in excess of par value		72000
20 oct.	NO entry
31 oct.	Common stock dividend distributable ( 4000 * 2 )	8000
	Common stock		8000